Average cap rates on trades involving retail properties fell 15 basis points from the third to the fourth quarter of 2011, to 7.71 percent, according to a report from CBRE. Year-over-year the change was even more dramatic, with average cap rates falling 41 basis points. In the fourth quarter of 2011, retail cap rates were lowest in the South and West of the country, averaging 7.69 percent. In the East, cap rates averaged 7.77 percent and in the Midwest, they were at 7.75 percent.