Net Lease Market Strikes Equilibrium

Net Lease Market Strikes Equilibrium

Cap rates for the single-tenant net lease retail sector rose by 10 basis points in the second quarter of 2018, representing the largest such increase since the second quarter of 2011. Cap rates compressed for the office and industrial sector by 5 and 25 basis points, respectively.

The upward trend in cap rates should persist as the Federal Reserve continues to implement its monetary policy objectives. As investors expect increased cap rate pressure to remain, the supply of single-tenant net lease properties on the market continues to increase, too. Owners of single-tenant properties are bringing those assets to market in an attempt to maximize value before cap rates increase further. In the second quarter of 2018, the net lease sector experienced an uptick in supply of more than 11 percent, with the majority coming from net lease retail properties.

Commercial Property Executive

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Net Lease Market Strikes Equilibrium

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The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds./

Founded in 1997, the firm has arranged the acquisition and disposition of over $2.1 billion of single tenant net lease real estate transactions. In 2010-2014, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago

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