July 30, 2015
An influx of new properties has slowed cap-rate compression in the single-tenant, net-lease property market, according to The Boulder Group’s quarterly survey. U.S. asking cap rates for retail net-lease properties were at 6.4 percent in the second quarter, unchanged from the previous quarter. Meanwhile, the number of retail net-lease properties for sale jumped by 23 percent quarter on quarter, to 3,372. Recently constructed Dollar General, O’Reilly Auto Parts and PNC Bank properties experienced cap-rate compression of 12, 30 and 12 basis points, respectively, in the second quarter; McDonald’s ground-leased assets continued to achieve the lowest cap-rate levels in the net-lease sector, at about 3.8 percent.
