Thursday, September 8, 2011

Net Lease Cap Rates, Sector by Sector

By Winston Orzechowski,
Research Director, Calkain Cos
.

Net lease cap rates averaged 7.75 percent for the first quarter of 2011, continuing the rate drop that began in the second half of 2010. The key driver in this trend has been an increased demand for high-quality net lease properties — assets which feature a strong credit tenant, good location and favorable lease terms – and the scarce supply of those high quality assets. Investors have clearly shown a lopsided preference for these triple-net-lease investment properties and, as 2011 progresses, demand will outpace supply.

http://www.cpexecutive.com/newsletters/capitalmarkets-newsletter/netleasecolumn/net-lease-cap-rates-sector-by-sector/

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