Tag: Cap Rates

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.…

Albina SuQ4 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

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
Traci BidingerCap 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 …

Traci BidingerHow Will The Federal Reserve Impact Cap Rates?