Net Lease Market Continues Strong Come Back
Single tenant net leased deals, an area that never truly ceased activity, has been leading the comeback among property classes. RetailTraffic's recent story is in-line with what we've been seeing in the market as well, with cap rate compression being lead by net leased opportunities. Though many owners who bought in 3 or more years ago at sub-7% cap rates are hesitant to lose on the sales side today, new development and even some of those hold-outs are recognizing interest is back and sub-8% is doable. As the article points out, cap rates for a Walgreens are probably around 7.75%, though we see that compressing over the next 6-9 months by up to 50 basis points.
Labels: Net Lease