fix(extract): pass page lines to per-page markdown conversion (#434)

* fix(layout): keep relative-valley column detection on table pages

The page_has_table guard predates item claiming: by grouping time the
detected table's items have already left the flow, so a table cannot
fake a gutter in the histogram this guard protects, and the prose gate
inside relative-valley acceptance rejects any residual table-shaped
split. Without the fallback, the prose remainder of a table-bearing
two-column page fell to single-column Y-sorting and its columns
interleaved line by line.

* fix(layout): lower the relative-valley floor to sparse pages

The 100-item floor guarded against shallow histogram dips on sparse
pages, but OCR'd multi-column pages produce few long line-runs (a
two-column French academic page arrives as ~60 items) and were falling
to single-column Y-sorting, weaving their columns line by line. The
prose gate inside relative-valley acceptance is the real defense
against spurious dips; 30 items is enough for it to judge.

* fix(layout): re-guard the ungated XY-cut fallthrough on table pages

Removing page_has_table from the relative-valley condition also
unlocked the XY-cut fallback inside that block, which has no prose
gate — a table page whose valley candidate was just rejected could
take an unvalidated split. The guard is restored on that call
specifically; the relative-valley path keeps its prose-gated access.
Also rewrite the stale dense-page comment for the 30-item floor.
Bench and corpus unchanged (462/884, corpus byte-identical).

* fix(extract): pass page lines to per-page markdown conversion

The per-page extraction path (extract_pages_markdown_mem_impl, used by the
pages API and every --ocr auto run) partitioned each page's rects but
passed an empty slice for PDF lines to markdown conversion, while the
extracted all_lines sat unused. Every table only the line-based detector
finds (text-anchor rule tables, ruled grids) was silently dropped in that
mode, even though the whole-document path emitted it fine.

Partition all_lines per page like rects and pass them through. Regression
test: a rule-anchored table fixture must survive the pages API.

src/lib.rs

@@ -592,6 +592,12 @@ fn extract_pages_markdown_mem_impl(
             .cloned()
             .collect();
 
+        let page_lines: Vec<types::PdfLine> = all_lines
+            .iter()
+            .filter(|l| l.page == page_1idx)
+            .cloned()
+            .collect();
+
         let has_gid = gid_pages.contains(&page_1idx);
         let has_text_quality_issue = text_quality.pages_needing_ocr.contains(&page_1idx);
 
@@ -629,7 +635,7 @@ fn extract_pages_markdown_mem_impl(
                 page_items,
                 options,
                 &page_rects,
-                &[],
+                &page_lines,
                 markdown::MarkdownDocumentContext {
                     page_thresholds: &page_thresholds,
                     struct_roles: None,

src/markdown/mod.rs

@@ -9,6 +9,7 @@
 pub(crate) mod analysis;
 mod classify;
 mod convert;
+mod furniture;
 mod heading;
 mod postprocess;
 mod preprocess;
@@ -634,7 +635,12 @@ fn is_parallel_prose_table(table: &crate::tables::Table) -> bool {
         }
     }
 
-    let is_parallel = !has_compact_header
+    // A compact header row is evidence for a real table — unless cross-row
+    // prose continuations outnumber the rows, which no genuine table
+    // produces: the "header" is then just two short line fragments at the
+    // top of parallel prose columns.
+    let header_blocks = has_compact_header && continuation_fragments <= table.cells.len();
+    let is_parallel = !header_blocks
         && non_empty >= 5
         // Independent prose columns have asynchronous line/paragraph breaks;
         // a fully populated grid is positive evidence for a real descriptive
@@ -1149,7 +1155,7 @@ pub(crate) fn strip_repeated_header_footer_lines(
     lines: Vec<crate::types::TextLine>,
     page_count: u32,
 ) -> Vec<crate::types::TextLine> {
-    preprocess::strip_repeated_lines(lines, page_count)
+    furniture::strip_header_footer_lines(lines, page_count)
 }
 
 /// Convert positioned text items to markdown with structure detection
@@ -1374,7 +1380,6 @@ pub(crate) fn to_markdown_from_items_with_rects_and_lines(
             chart_page_prose_column_split(&page_layout_items)
                 .filter(|&split_x| chart_spans_prose_split(region, split_x))
         });
-        let chart_prose_columns = chart_prose_split.is_some();
 
         // Check for side-by-side table layout using the original items. Sparse
         // numeric cells need table context before they can be distinguished
@@ -1615,10 +1620,16 @@ pub(crate) fn to_markdown_from_items_with_rects_and_lines(
                     if subset_items.len() < min_items {
                         return;
                     }
-                    // Keep body-font detection available on chart pages: a real
-                    // table can share the prose anchors. Reject only candidates
-                    // whose cells prove they are parallel prose fragments.
-                    let reject_parallel_prose = chart_prose_columns && !was_split;
+                    // Reject candidates whose cells prove they are parallel
+                    // prose fragments — the shape produced when the body-font
+                    // pass projects a multi-column text page onto one table
+                    // grid (two-column reference sections are the classic
+                    // case). The check needs internal transition evidence
+                    // (unterminated cells flowing into lowercase starts in
+                    // the same column), so genuine tables with long cells
+                    // pass. Band-split retries stay exempt: they exist for
+                    // tables that only assemble after recombining bands.
+                    let reject_parallel_prose = !was_split;
                     let tables = detect_tables_with_page_width(
                         subset_items,
                         base_size,
@@ -2106,7 +2117,7 @@ pub(crate) fn to_markdown_from_items_with_rects_and_lines(
 
     // Strip repeated headers/footers before conversion
     let lines = if options.strip_headers_footers {
-        preprocess::strip_repeated_lines(lines, document_page_count)
+        furniture::strip_header_footer_lines(lines, document_page_count)
     } else {
         lines
     };
@@ -2673,6 +2684,35 @@ mod tests {
         );
         assert!(!is_parallel_prose_table(&data));
 
+        // A compact header row atop parallel prose columns: cross-row prose
+        // continuations outnumber the rows, so the header cannot save the
+        // candidate — this is page prose with two short fragments on top.
+        let headed_parallel_prose = crate::tables::Table::new(
+            vec![90.0, 340.0],
+            vec![340.0, 320.0, 300.0, 280.0, 260.0],
+            vec![
+                vec!["June 2023".into(), "Page 5".into()],
+                vec![
+                    "the committee reviewed the proposal and decided that the".into(),
+                    "funding for the second phase would continue subject to the".into(),
+                ],
+                vec![
+                    "implementation schedule should be extended by another".into(),
+                    "quarterly reviews established during the first phase of the".into(),
+                ],
+                vec![
+                    "six months to accommodate the revised procurement rules".into(),
+                    "".into(),
+                ],
+                vec![
+                    "adopted at the previous meeting of the governing board".into(),
+                    "participating institutions across the partner regions".into(),
+                ],
+            ],
+            (0..10).collect(),
+        );
+        assert!(is_parallel_prose_table(&headed_parallel_prose));
+
         let headed_text_table = crate::tables::Table::new(
             vec![90.0, 340.0],
             vec![320.0, 300.0, 280.0],

src/markdown/preprocess.rs

@@ -1,6 +1,6 @@
 //! Line preprocessing: heading merging, drop cap handling, and repeated line removal.
 
-use std::collections::{HashMap, HashSet};
+use std::collections::HashMap;
 
 use crate::structure_tree::StructRole;
 use crate::types::{TextItem, TextLine};
@@ -229,342 +229,6 @@ pub(crate) fn merge_drop_caps(lines: Vec<TextLine>, base_size: f32) -> Vec<TextL
     result
 }
 
-/// Normalize whitespace in a string for comparison: trim and collapse internal runs of whitespace.
-fn normalize_whitespace(s: &str) -> String {
-    s.split_whitespace().collect::<Vec<_>>().join(" ")
-}
-
-/// Normalize text for frequency comparison: collapse whitespace and strip leading/trailing
-/// digit sequences (page numbers). E.g., "Chapter 3 — Page 5" and "Chapter 3 — Page 6"
-/// both normalize to "Chapter 3 — Page".
-fn normalize_for_comparison(s: &str) -> String {
-    let ws = normalize_whitespace(s);
-    let trimmed = ws
-        .trim_start_matches(|c: char| c.is_ascii_digit())
-        .trim_start();
-    let trimmed = trimmed
-        .trim_end_matches(|c: char| c.is_ascii_digit())
-        .trim_end();
-    trimmed.to_string()
-}
-
-/// Returns true if the line looks like a list item or heading (should not be stripped).
-fn is_structural_line(text: &str) -> bool {
-    let t = text.trim_start();
-    t.starts_with('#')
-        || t.starts_with("- ")
-        || t.starts_with("* ")
-        || t.starts_with("• ")
-        || t.chars()
-            .next()
-            .map(|c| c.is_ascii_digit())
-            .unwrap_or(false)
-            && (t.contains(". ") || t.contains(") "))
-}
-
-/// Returns true if a line consists entirely of a single repeated character
-/// (e.g., "----------", "**************", "============").
-fn is_decorative_separator(text: &str) -> bool {
-    let mut chars = text.chars();
-    let first = match chars.next() {
-        Some(c) => c,
-        None => return false,
-    };
-    chars.all(|c| c == first)
-}
-
-/// Strip lines that repeat on many distinct pages (running headers/footers).
-///
-/// A line is considered a repeated header/footer if:
-/// 1. Its normalized text appears on `>= max(3, page_count * 30%)` distinct pages
-/// 2. It is at least 10 characters long
-/// 3. It doesn't look like a structural element (heading, list item)
-/// 4. It consistently appears in the top or bottom N distinct Y positions
-/// 5. Its Y positions across pages have low variance (consistent placement),
-///    distinguishing true headers/footers from table content that happens to
-///    land near page margins
-/// 6. It is not a decorative separator (repeated single character)
-///
-/// Additionally, TextLines at the same Y position on a page are grouped into
-/// "Y-bands." When any member of a Y-band is stripped, all siblings in that
-/// band are also stripped. This handles split column headers where individual
-/// fragments may not independently meet the frequency threshold.
-///
-/// Page numbers are stripped from line text before comparison, so headers like
-/// "Chapter 3 — Page 5" and "Chapter 3 — Page 6" are treated as the same text.
-pub(crate) fn strip_repeated_lines(lines: Vec<TextLine>, page_count: u32) -> Vec<TextLine> {
-    if lines.is_empty() || page_count < 3 {
-        return lines;
-    }
-
-    // Compute Y range per page (min_y, max_y)
-    let mut page_y_range: HashMap<u32, (f32, f32)> = HashMap::new();
-    for line in &lines {
-        let entry = page_y_range.entry(line.page).or_insert((line.y, line.y));
-        if line.y < entry.0 {
-            entry.0 = line.y;
-        }
-        if line.y > entry.1 {
-            entry.1 = line.y;
-        }
-    }
-
-    // Build sorted Y values per page, so we can check line rank (position from edge)
-    let mut page_sorted_ys: HashMap<u32, Vec<f32>> = HashMap::new();
-    for line in &lines {
-        page_sorted_ys.entry(line.page).or_default().push(line.y);
-    }
-    for ys in page_sorted_ys.values_mut() {
-        ys.sort_by(|a, b| a.total_cmp(b));
-        ys.dedup();
-    }
-
-    // A line is in the page margin if it's among the first or last N distinct
-    // Y positions on that page. This is more robust than a percentage-based zone
-    // because it catches actual edge lines regardless of how much content fills
-    // the page. N=5 accommodates multi-line headers/footers and repeated form
-    // column headers (e.g., 5-row IRS form headers) that sit just inside the
-    // page margin.
-    const EDGE_LINE_COUNT: usize = 5;
-
-    /// Returns true if the given Y position is among the first or last N distinct
-    /// Y positions on the specified page.
-    fn is_y_at_edge(y: f32, page: u32, page_sorted_ys: &HashMap<u32, Vec<f32>>, n: usize) -> bool {
-        let ys = match page_sorted_ys.get(&page) {
-            Some(ys) => ys,
-            None => return false,
-        };
-        if ys.len() <= n * 2 {
-            // Page has very few lines — everything is near the edge
-            return true;
-        }
-        // Check if this Y is among the first or last N
-        let pos = match ys.iter().position(|&py| (py - y).abs() < 0.1) {
-            Some(p) => p,
-            None => return false,
-        };
-        pos < n || pos >= ys.len() - n
-    }
-
-    // Average page span for normalizing Y variance
-    let avg_span = {
-        let total: f32 = page_y_range.values().map(|(lo, hi)| hi - lo).sum();
-        if page_y_range.is_empty() {
-            1.0
-        } else {
-            (total / page_y_range.len() as f32).max(1.0)
-        }
-    };
-
-    // Build Y-bands: group line indices by (page, quantized_y).
-    // Lines at the same Y position (within ~0.1pt) on the same page form a band.
-    let mut y_bands: HashMap<(u32, i32), Vec<usize>> = HashMap::new();
-    for (idx, line) in lines.iter().enumerate() {
-        let y_bucket = (line.y * 10.0).round() as i32;
-        y_bands.entry((line.page, y_bucket)).or_default().push(idx);
-    }
-
-    // Build frequency maps using normalize_for_comparison.
-    // Individual line text -> distinct pages
-    let mut freq: HashMap<String, HashSet<u32>> = HashMap::new();
-    let mut y_positions: HashMap<String, Vec<f32>> = HashMap::new();
-    for line in &lines {
-        if !is_y_at_edge(line.y, line.page, &page_sorted_ys, EDGE_LINE_COUNT) {
-            continue;
-        }
-        let text = line.text();
-        let normalized = normalize_for_comparison(&text);
-        if normalized.len() < 10 || is_decorative_separator(&normalized) {
-            continue;
-        }
-        freq.entry(normalized.clone())
-            .or_default()
-            .insert(line.page);
-        y_positions.entry(normalized).or_default().push(line.y);
-    }
-
-    // Coalesced row text -> distinct pages (for multi-member Y-bands).
-    // This catches split column headers where individual fragments don't meet
-    // the frequency threshold but the combined row does.
-    let mut band_freq: HashMap<String, HashSet<u32>> = HashMap::new();
-    let mut band_y_positions: HashMap<String, Vec<f32>> = HashMap::new();
-    for (&(page, _), indices) in &y_bands {
-        if indices.len() < 2 {
-            continue; // single-line bands are already in the individual map
-        }
-        let band_y = lines[indices[0]].y;
-        if !is_y_at_edge(band_y, page, &page_sorted_ys, EDGE_LINE_COUNT) {
-            continue;
-        }
-        let mut sorted_indices = indices.clone();
-        sorted_indices.sort();
-        let coalesced: String = sorted_indices
-            .iter()
-            .map(|&i| lines[i].text())
-            .collect::<Vec<_>>()
-            .join(" ");
-        let normalized = normalize_for_comparison(&coalesced);
-        if normalized.len() < 10 || is_decorative_separator(&normalized) {
-            continue;
-        }
-        band_freq
-            .entry(normalized.clone())
-            .or_default()
-            .insert(page);
-        band_y_positions.entry(normalized).or_default().push(band_y);
-    }
-
-    // Compute threshold
-    let threshold = 3u32.max(page_count * 30 / 100);
-
-    // Check Y-position consistency: headers/footers appear at the same position
-    // on every page, table content varies. Require normalized stddev < 5% of
-    // average page span.
-    let has_consistent_y = |text: &str, positions: &HashMap<String, Vec<f32>>| -> bool {
-        let pos = match positions.get(text) {
-            Some(p) if p.len() >= 2 => p,
-            _ => return true, // single occurrence — allow
-        };
-        let n = pos.len() as f32;
-        let mean = pos.iter().sum::<f32>() / n;
-        let variance = pos.iter().map(|y| (y - mean).powi(2)).sum::<f32>() / n;
-        let stddev = variance.sqrt();
-        stddev / avg_span < 0.05
-    };
-
-    // Identify candidates from individual frequency map
-    let candidates: HashSet<String> = freq
-        .into_iter()
-        .filter(|(text, pages)| {
-            pages.len() as u32 >= threshold
-                && !is_structural_line(text)
-                && has_consistent_y(text, &y_positions)
-        })
-        .map(|(text, _)| text)
-        .collect();
-
-    // Identify candidates from coalesced band frequency map
-    let band_candidates: HashSet<String> = band_freq
-        .into_iter()
-        .filter(|(text, pages)| {
-            pages.len() as u32 >= threshold
-                && !is_structural_line(text)
-                && has_consistent_y(text, &band_y_positions)
-        })
-        .map(|(text, _)| text)
-        .collect();
-
-    if candidates.is_empty() && band_candidates.is_empty() {
-        return lines;
-    }
-
-    // Build removal set.
-    // A line is removed if it's at an edge position and:
-    //   (a) its individual text matches a candidate, OR
-    //   (b) its Y-band's coalesced text matches a band candidate, OR
-    //   (c) any sibling in its Y-band was removed (propagation).
-    //
-    // The first occurrence (lowest page number) of each repeated header/footer
-    // is kept so that document titles, column headers, etc. appear once.
-    let mut removal_set: HashSet<usize> = HashSet::new();
-
-    // Track which page first shows each candidate (to preserve first occurrence)
-    let mut first_page_individual: HashMap<String, u32> = HashMap::new();
-    for (idx, line) in lines.iter().enumerate() {
-        if !is_y_at_edge(line.y, line.page, &page_sorted_ys, EDGE_LINE_COUNT) {
-            continue;
-        }
-        let text = line.text();
-        let normalized = normalize_for_comparison(&text);
-        if candidates.contains(&normalized) {
-            let first = first_page_individual.entry(normalized).or_insert(line.page);
-            if line.page > *first {
-                removal_set.insert(idx);
-            } else if line.page == *first {
-                // Keep this occurrence (first page)
-            }
-        }
-    }
-
-    // Track first page for band candidates
-    let mut first_page_band: HashMap<String, u32> = HashMap::new();
-    // First pass: find first page for each band candidate
-    for (&(page, _), indices) in &y_bands {
-        if indices.len() < 2 {
-            continue;
-        }
-        let band_y = lines[indices[0]].y;
-        if !is_y_at_edge(band_y, page, &page_sorted_ys, EDGE_LINE_COUNT) {
-            continue;
-        }
-        let mut sorted_indices = indices.clone();
-        sorted_indices.sort();
-        let coalesced: String = sorted_indices
-            .iter()
-            .map(|&i| lines[i].text())
-            .collect::<Vec<_>>()
-            .join(" ");
-        let normalized = normalize_for_comparison(&coalesced);
-        if band_candidates.contains(&normalized) {
-            let first = first_page_band.entry(normalized).or_insert(page);
-            if page < *first {
-                *first = page;
-            }
-        }
-    }
-    // Second pass: mark for removal (skip first page)
-    for (&(page, _), indices) in &y_bands {
-        if indices.len() < 2 {
-            continue;
-        }
-        let band_y = lines[indices[0]].y;
-        if !is_y_at_edge(band_y, page, &page_sorted_ys, EDGE_LINE_COUNT) {
-            continue;
-        }
-        let mut sorted_indices = indices.clone();
-        sorted_indices.sort();
-        let coalesced: String = sorted_indices
-            .iter()
-            .map(|&i| lines[i].text())
-            .collect::<Vec<_>>()
-            .join(" ");
-        let normalized = normalize_for_comparison(&coalesced);
-        if band_candidates.contains(&normalized) {
-            let first = first_page_band.get(&normalized).copied().unwrap_or(0);
-            if page > first {
-                for &idx in &sorted_indices {
-                    removal_set.insert(idx);
-                }
-            }
-        }
-    }
-
-    // (c) Y-band sibling propagation: if any member is removed, remove all
-    //     members (provided the band is at an edge position).
-    for (&(page, _), indices) in &y_bands {
-        let band_y = lines[indices[0]].y;
-        if !is_y_at_edge(band_y, page, &page_sorted_ys, EDGE_LINE_COUNT) {
-            continue;
-        }
-        if indices.iter().any(|idx| removal_set.contains(idx)) {
-            for &idx in indices {
-                removal_set.insert(idx);
-            }
-        }
-    }
-
-    if removal_set.is_empty() {
-        return lines;
-    }
-
-    lines
-        .into_iter()
-        .enumerate()
-        .filter(|(idx, _)| !removal_set.contains(idx))
-        .map(|(_, line)| line)
-        .collect()
-}
-
 #[cfg(test)]
 mod tests {
     use super::*;
@@ -679,53 +343,6 @@ mod tests {
         assert_eq!(result.len(), 2, "should merge font-based heading lines");
     }
 
-    #[test]
-    fn test_strip_repeated_keeps_first_occurrence() {
-        // Simulate a repeated page header on 10 pages.
-        // Each page has a running header at y=750 and many unique body lines.
-        let mut lines = Vec::new();
-        for page in 1..=10u32 {
-            // Header at top
-            lines.push(make_line(
-                "VOICE OF SOUTH MARION May fifteen twenty twenty five",
-                10.0,
-                page,
-                750.0,
-                None,
-            ));
-            // Body content — unique text per line per page (no digits to strip)
-            for j in 0..20u32 {
-                lines.push(make_line(
-                    &format!(
-                        "parcel r-{:04}-{:03} owner smith address oak street",
-                        page * 100 + j,
-                        page
-                    ),
-                    10.0,
-                    page,
-                    600.0 - j as f32 * 15.0,
-                    None,
-                ));
-            }
-        }
-
-        let result = strip_repeated_lines(lines, 10);
-
-        // The header should appear exactly once (page 1)
-        let header_count = result
-            .iter()
-            .filter(|l| l.text().contains("VOICE OF SOUTH MARION"))
-            .count();
-        assert_eq!(header_count, 1, "repeated header should be kept once");
-
-        // First occurrence should be on page 1
-        let first_header = result
-            .iter()
-            .find(|l| l.text().contains("VOICE OF SOUTH MARION"))
-            .unwrap();
-        assert_eq!(first_header.page, 1, "first occurrence should be on page 1");
-    }
-
     fn make_bold_line(text: &str, page: u32, y: f32) -> TextLine {
         let mut item = make_item(text, 12.0, None);
         item.is_bold = true;

tests/integration_tests.rs

@@ -3495,6 +3495,28 @@ fn test_extract_pages_markdown_basic() {
     assert!(!result.pages[0].needs_ocr);
 }
 
+#[test]
+fn test_extract_pages_markdown_keeps_line_based_tables() {
+    // The per-page path (used by every `--ocr auto` run) once passed an
+    // empty line slice to markdown conversion, silently dropping every
+    // table that only the line-based detector finds. This fixture's table
+    // is rule-anchored: it must survive the pages API exactly as it does
+    // the whole-document API.
+    let buf = std::fs::read("tests/fixtures/bits_pilani_feedback.pdf").unwrap();
+    let result = extract_pages_markdown_mem(&buf, None).unwrap();
+
+    let all_markdown: String = result
+        .pages
+        .iter()
+        .map(|p| p.markdown.as_str())
+        .collect::<Vec<_>>()
+        .join("\n");
+    assert!(
+        all_markdown.contains("|BIO|"),
+        "line-based table rows missing from pages API output"
+    );
+}
+
 #[test]
 fn test_extract_pages_markdown_uses_document_wide_folio_context() {
     let pdf = make_recurring_contextual_folio_pdf();

tests/snapshots/real-estate-pricing.md

@@ -2,9 +2,19 @@
 
 # BePriced?
 
-*Commercial real estate pricing* **C O M M E R C I A L R E A L E S T A T E** pricingisliketheweather:everyonetalks *needs disciplined and systematic*about it, but few understand it. Most observers base “appropriate” real estate *analysis of the data.* pricing on historical norms. The cap rate—anindicatorofvaluerelativetosta- bilized net operating income (NOI) before capital expenditures, tenant improvement,andleasingcommissions— isthemostcommonlyusedmetricofreal estate pricing. But cap rates have been largelyunresponsivetoalternativeratesof return available to investors, with the **P E T E R L I N N E M A N** exception of BBB bonds, throughout
+*Commercial real estate pricing*
 
-8 4 Z E L L / L U R I E R E A L E S T A T E C E N T E R
+*needs disciplined and systematic*
+
+*analysis of the data.*
+
+**C O M M E R C I A L R E A L E S T A T E** pricingisliketheweather:everyonetalks about it, but few understand it. Most observers base “appropriate” real estate pricing on historical norms. The cap rate—anindicatorofvaluerelativetosta- bilized net operating income (NOI) before capital expenditures, tenant improvement,andleasingcommissions— isthemostcommonlyusedmetricofreal estate pricing. But cap rates have been largelyunresponsivetoalternativeratesof return available to investors, with the exception of BBB bonds, throughout
+
+C E N T E R
+
+**P E T E R L I N N E M A N**
+
+8 4 Z E L L / L U R I E R E A L E S T A T E
 
 **Table I:** Cap rate correlations **Cap Rate Correlation With:*** **BBB Corp** **10-Year Bond Yield S&P Dividend** **Treasury (10-15 yr) Yield** Multifamily 0.187 0.771 0.068 Industrial-0.221 0.748-0.307 CBD Office-0.449 0.694-0.458 Retail-0.181 0.649-02.58
 
@@ -13,9 +23,11 @@
  12 10 8 Percent 6 4 2 1982 1986 1990 1994 1998 2002 2006
 Apartment Retail ndustrial 10-yr reasury CBD Office
 
-most of the past twenty-five years (Table presented in Figure 2 with an eighteen-
+most of the past twenty-five years (Table
+
+I). Such a relationship defies investment theory,asrealestatepricingshouldchange as property risks and the returns of alter- nativeinvestmentschange. Figure1displaysNCREIFcapratesby property type compared to the ten-year Treasury yield. Because the National Council of Real Estate Investment Fiduciaries (NCREIF) cap rate data is seriouslyflawedduetoappraisallags,itis
+presented in Figure 2 with an eighteen- monthlag.Thisdataprovidesanoverview ofthepricingofinstitutionalqualityreal estate.Figure2reflectsthesecapratesnet of the ten-year Treasury yield. Since cap rate spreads are highly correlated across propertytypes(TableII),wecanspeakof “cap rates” without reference to property type with little loss of insight. Cap rate spreadswerenegativeintheearlytomid- 1980s, when purchasing real estate was
 
-I). Such a relationship defies investment monthlag.Thisdataprovidesanoverview theory,asrealestatepricingshouldchange ofthepricingofinstitutionalqualityreal as property risks and the returns of alter-estate.Figure2reflectsthesecapratesnet nativeinvestmentschange. of the ten-year Treasury yield. Since cap Figure1displaysNCREIFcapratesby rate spreads are highly correlated across property type compared to the ten-year propertytypes(TableII),wecanspeakof Treasury yield. Because the National “cap rates” without reference to property Council of Real Estate Investment type with little loss of insight. Cap rate Fiduciaries (NCREIF) cap rate data is spreadswerenegativeintheearlytomid- seriouslyflawedduetoappraisallags,itis 1980s, when purchasing real estate was
 R E V I E W 8 5
 
 **Figure 2:** Capratespreadsover10-yearTreasury