Cap rates in the single tenant net lease retail sector were flat in the fourth quarter of 2018 compared to the previous quarter, but 95 percent of active net lease participants expect cap rates to rise in 2019. Nearly half predict cap rates will increase between 25 and 49 basis points by the end of the year, according to a new report by The Boulder Group.
None of those net lease participants surveyed by The Boulder Group for the Fourth Quarter 2018 Net Lease Report expect cap rate compression. One third of respondents expect cap rates to move up between 1 and 24 basis points, with the remaining 14 percent predicting cap rates to increase by 50 basis points or more.
More info at Commercial Property Executive:
Net Lease Retail Cap Rates Flatten in Q4, Rise for the Year