Competition Increases in Net Lease Market
ByBook your reservations and head to Atlanta for RealShare INDUSTRIAL! Join peers from across the country for networking at the College Football Hall of Fame and get the latest market intelligence. Nov 3-4.
Private and 1031 investors are attracted to stores, such as this Dunkin’ Donuts, that host well-known brand names.
CHICAGO—Cap rates for the single tenant net lease properties slid down in the third quarter, continuing a long-term decline that has now lasted nearly five years. As more investors entered the competition for properties, the retail and office sectors reached new historic lows of 6.25% and 7.25% respectively, and the industrial rate fell slightly to 7.59%, according to a new report from the Boulder Group, a net lease investment brokerage firm located in suburban Chicago.
“The net lease sector as a whole is becoming more popular,” Randy Blankstein, president of Boulder, tells GlobeSt.com. He attributes much of this popularity to demographics. A lot of people are on the verge of retirement and have started looking for investments which promise higher yields than bonds, and net lease retail properties are especially well-suited for this group…
