Tag: Cap Rates

Cap Rate Report Q3 2019

Q3 2019 Overview | Activity Shakes the Summer Doldrums

When Calkain released its second-quarter Cap Rate Report, we were deep in the summer doldrums, and activity—and cap rate movement—reflected the quiet. Summer’s gone now and, despite a slight tapping of the brakes—with thoughts of presidential elections and trade wars dancing in our heads—the investment market has shaken its lethargy.…

Leigh ClineCap Rate Report Q3 2019

Tenant Profile – Ruby Tuesday

Tenant Description

From humble beginnings in 1972 in Knoxville, TN, Ruby Tuesday has grown into one of the premier casual dining chains not just in the United States, but around the world. Currently operating over 500 locations with over 32,000 employees, we can see how far this restaurant has come. In 2017, the chain went private after being acquired by NRD Capital Management, based out of Atlanta, GA.…

Amanda WillisTenant Profile – Ruby Tuesday

Net Lease Investors Take a Hard Look at CRE Fundamentals

GlobeSt.com

Calkain’s Q2 Net Lease Overview shows investors taking a hard look at real estate fundamentals, even as property sales continue their increase from the first quarter of 2019.

In analyzing report metrics in our Q2 2019 Net Lease Overview, we noted a focus on fundamentals, a bump in sales activities, and third, a three-sector impact. Let’s explain the third point first.

Q2 numbers were influenced mainly by the automotive, big box, and dollar store sectors; all three types experienced a jump in sales, though their cap rates differed.…

Amanda WillisNet Lease Investors Take a Hard Look at CRE Fundamentals

Cap Rate Report Q2 2019

Q2 2019 Overview | Real Estate Fundamentals Drive Q2 Activity

It’s still a bit early to see the effect of the Federal Reserve’s recent rate decrease in the dynamics of the market. What we do know, however, is that further cuts will keep potential buyers and sellers looking for deals.…

Amanda WillisCap Rate Report Q2 2019

Net Lease Report – QSR Sector

The Quick Service Restaurant (QSR) sector is comprised of a variety of fast food concepts ranging from the well-known brands like Chick-fil-A and McDonald’s, to smaller chains such as Raising Cane’s and Steak N’ Shake. This report takes a look at the sector in-depth, providing an analysis of the past twelve months of data.…

Amanda WillisNet Lease Report – QSR Sector

Tenant Profile – McDonald’s

McDonald’s was founded in 1940 in San Bernardino, CA by brothers Dick and Mac McDonald as a Bar-B-Q restaurant. In 1948, the McDonald brothers remodeled and reopened the restaurant as a “self-service drive-in restaurant” with nine items on the menu: hamburgers, cheeseburgers, soft drinks, milk, coffee, potato chips, and a slice of pie. …

Amanda WillisTenant Profile – McDonald’s

The Net Lease Resolution for 2019: Expect More of the Same

Unlike most of us, there was no rich celebration of the new year for the net lease sector. No massive resolutions, in fact, not much change at all. If there is a watchword for 2019, it seems to be expect more of the same, at least in terms of the cap rate picture.

In fact, as we pointed out in our most recent quarterly report, tracking the single tenant net lease cap rate against the 10-year Treasury, both have been virtually flat going back to the fourth quarter of 2016, and of the two, cap rates were the flatter! The

Amanda WillisThe Net Lease Resolution for 2019: Expect More of the Same

Net Lease Properties Maintain Pace

Shopping Center Business

The market for single tenant net lease properties in 2017 operated in an environment of ambivalence. At issue were the political uncertainty following the election of a new U.S. president along with uncertainty regarding how proposed changes to the nation’s tax code would treat investors used to the benefits of a 1031 exchange. Rising interest rates over the past 18 months factored into net lease transactions, compressing yields on properties. All of these elements come into play at a time when retail itself is going through changes, forcing investors to look more closely at not only the real estate and

Amanda WillisNet Lease Properties Maintain Pace

Investors Continue to Chase Net Lease Cap Rates

GlobeSt.com

The two sectors at either end of the cap-rate change spectrum in Q3 were dollar stores, up 45.1 bps, and pharmacies, which posted a -29.3 shift.

Cap rates’ upward trend continued in the third quarter with an 8-point basis gain, according to to Calkain Research’s Q3 Cap Rate report. Furthermore the trend shows no sign of abating, Calkain goes on to say.

The two sectors at either end of the cap-rate change spectrum this quarter are dollar stores, up 45.1 bps, and pharmacies, which posted a -29.3 shift.…

Amanda WillisInvestors Continue to Chase Net Lease Cap Rates

As QSR Cap Rates Continue to Decline, What’s Behind the Premium for this Sector?

GlobeSt.com

This premium to the STNL average is driven by their leases, locations, and insulation from ecommerce. The typical QSR lease is long (15 to 20 years), with no landlord responsibilities, and rental increases during the base term. QSRs usually operate in buildings with strong real estate fundamentals, good visibility from roads with high traffic counts. These factors not only help the tenant, but make the property attractive to investors.…

Amanda WillisAs QSR Cap Rates Continue to Decline, What’s Behind the Premium for this Sector?