Tag: Cap Rates

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?

A Sector-by-Sector Look At Net Lease Cap Rates

GlobeSt.com

For the first half of this year, the average cap rate rose in nine out of the 11 net lease subsectors compared to the same period last year, according to the Calkain Cos.’ Semi-Annual Net Lease Report.…

Amanda WillisA Sector-by-Sector Look At Net Lease Cap Rates

What Happened To Net Lease Over The Last Quarter?

GlobeSt.com

Cap rates overall have seen an up-tick, but at a manageable pace, while core assets continue to trade at historically aggressive pricing

ap rates are beginning to move, the average cap rate for single tenant net lease (STNL) properties rose 17 basis points from Q1. The major driver of this movement was a change in the types of leases, with more double-net leases closing during Q2. The pharmacy and automotive sectors had the largest uptick in cap rate. This is the third straight quarter over quarter gain in average cap rate.…

Amanda WillisWhat Happened To Net Lease Over The Last Quarter?

Q4 2017 Cap Rate Report

The average cap rates from Q3 to Q4 expanded by 6-bps. The rise in cap rates was helped by fewer ground leases and a high proportion of double net leases trading during Q4. Raising interest rates are expected to put upward pressure on cap rates in the future.…

Traci BidingerQ4 2017 Cap Rate Report

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.…

Traci BidingerCap Rate Report Q3 2017