Tag: Cap Rates

The Net Lease Market In One Word


The first quarter of 2017 can be summed up with a single word: Stable.  According to our Calkain research team, the entire market only moved 11 bps. This lack of movement was driven by the Dollar Store and Pharmacy sectors.…

Traci BidingerThe Net Lease Market In One Word

Cap Rate Report Q1 2017

The 1st Quarter of 2017, on the whole, was fairly quiet seeing a very slight compression of 11 bps in cap rates.

AmyCap Rate Report Q1 2017

Investor Demand Remains Strong Despite Rising Cap Rates

Herndon, VA – 2016 ended with the Federal Reserve increasing the interest rate by 0.25%, signifying confidence in an improving US economy.  As illustrated in Calkain’s newly released Q4 Cap Rate Report, cap rates in the single tenant net lease (STNL) market are also on the rise, ticking up 18 bps from Q3.  Cap rates will continue to trend upward along with the interest rates, yet still are only at the level they were at this time last year.

While we are witnessing some change, albeit small, is the spread between the US Ten Year Treasury Rate and the …

Emily CusmanoInvestor Demand Remains Strong Despite Rising Cap Rates

Lessons Learned From Previous Mergers


The recent announcement that Fred’s would purchase upwards of 600 locations from Walgreens/Rite Aid to help ensure approval of their merger, highlights an issue facing some owners of these properties. What happens if my property is slated to be closed?…

AmyLessons Learned From Previous Mergers

What To Expect In December


With the holiday season in full swing, the country will be waiting to see if the Fed will increase interest rates during their meeting on December 14th. Following Trump’s presidential election victory, we have seen a surge in S&P, Dow Jones, and Nasdaq.  The Dollar has also advanced and we’ve seen a rise in bond yields.  Meanwhile, cap rates have continued to compress this year, with some STNL properties trading at record low cap rates. Clearly, that trend can’t hold on for much longer, a tune we’ve all been singing for a while.

A major indicator for a rate hike …

AmyWhat To Expect In December

Dialysis Centers Gain Traction


Fresenius and DaVita are the top two dialysis providers in the nation. Demand for these centers has increased dramatically in recent years due to the aging baby boomer population and rising obesity rates.  This niche within the medical sector is expected to grow.  Both are considered stable tenants because of the market demand, attractive cap rates, and credit rated companies.

DaVita and Fresenius are generally located in freestanding buildings with others being in strip centers. The lease structure of these dialysis centers often includes annual rent increases and option periods.  Dialysis centers are located in close proximity to the hospitals …

Traci BidingerDialysis Centers Gain Traction

Calkain’s Rick Fernandez Sells Virginia Applebee’s at a 5.42% Cap Rate

Herndon, VA – Rick Fernandez, Senior Managing Director of Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of a NNN Applebee’s Ground Lease in Front Royal, Virginia for $1.925M.

Fernandez represented the seller in the sale of the property, providing marketing and transaction support to guide the deal from negotiating offers to closing.  The buyer acquired the property as part of a 1031 exchange.  The ideally situated real estate and strong franchise operation provided the long term value and security the buyer desired for their investment property.

“Our marketing approach continues to yield industry …

Traci BidingerCalkain’s Rick Fernandez Sells Virginia Applebee’s at a 5.42% Cap Rate

Dollar General Is On An Upward Path


There are many forces driving Dollar General to be an investor’s current pick in the net lease world. As of August 13, 2016, Dollar General operates 13,000 stores in 43 states with plans to open 900 more stores this year and 1,000 more in 2017.  In order to support this expansion, the company plans to hire 10,000 employees this fall.

A majority of their locations have absolute-triple-net leases in place. The lease term is generally 15 years with stated option periods of 5 years each with rental increases ranging from 5-10% when an option is exercised. The national average cap …

Traci BidingerDollar General Is On An Upward Path