Tag: Cap Rates

Cap Rate Report Q3 2017

The average cap rate from Q2 to Q3 compressed slightly. This downward movement in an already low cap rate environment has caused the average to fall to its lowest level in net lease history. While rising interest rates are expected to push cap rates higher in the future, the increasing proportion of ground leases and falling number of double net leases across a number of sectors has pushed the average cap rate to historic lows.…

AmyCap Rate Report Q3 2017

Cap Rate Report Q2 2017

Calkain Research is implementing a change in how we present our data going forward. Capturing and accurately synthesizing the data which goes into these reports is difficult, to say the least. Complete data on many deals is often not obtainable. Additionally, some of the categories we track have limited transactions each quarter, which can result in a distorted average cap rate for each category and in turn the overall net lease average. This change will aid us in our objective in providing these reports in the most accurate way, and as bias free as possible.…

TAGS: CAP RATES
AmyCap Rate Report Q2 2017

How Will The Federal Reserve Impact Cap Rates?

GlobeSt.com

On July 26th, the Federal Reserve System (the Fed) announced they will maintain the current target range for the federal funds rate, 1.00% – 1.25%. The Fed also reaffirmed their promise from their June meeting and will “begin implementing its balance sheet normalization program relatively soon.” There are many eyes on this balance sheet because of the far reaching effects of unwinding $4.5 trillion worth of securities.

The Fed has gotten to this enormous balance sheet by purchasing primarily Treasury and mortgage-related securities, which represent approximately $2.5 trillion and $1.8 trillion respectively. These purchases began in 2008 as …

AmyHow Will The Federal Reserve Impact Cap Rates?

The Net Lease Market In One Word

GlobeSt.com

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.

TAGS: 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

GlobeSt.com

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

GlobeSt.com

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