Cap rates for the single tenant net lease retail sector increased by 5 basis points in the third quarter, marking the third consecutive quarter increase and its highest levels since the fourth quarter of 2015.
Asking cap rates also increased for the net lease office sector by 5 basis points but decreased for the industrial sector by 2 basis points, according to the Third Quarter 2018 Net Lease Report from The Boulder Group. “Demand for net lease properties has remained strong throughout the year.
The biggest surprise is that cap rates were relatively stable as the majority of investors expected cap rates to rise across the board by a more significant number,” Randy Blankstein, president of The Boulder Group, said in a prepared statement.
More info at Commercial Property Executive:
Net Lease Retail, Office Cap Rates Up, Industrial Down