Cap rate compression

[Greg L.]

I invest in an area where it seems that cap rates are compressing.  There are many commercial properties selling for cap rates around 5-6% which will simply not cash flow with debt.  Typically, banks appraise these at 9% and most were selling at that prior to the past year.  What are the implications of this for future rent and appreciation?  Do you view cap rate compression as a bell weather for higher rents and thus even higher appreciation in the near term?