Home > Investment > Net-Leased Retail Cap Rates Plummet | #cre #ccim #sior

Net-Leased Retail Cap Rates Plummet | #cre #ccim #sior


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Net-Leased Retail Cap Rates Plummet

Posted January 10th 2013

Capitalization rates for net-leased retail properties declined by 25 basis points between 3Q12 and 4Q12, according to The Boulder Group’s 4Q12 National Net Lease Research Report.

With limited construction and diminished supply, the number of net-leased retail properties dropped more than 12 percent from the previous quarter.

Low rents due to backfilling of second generation retail space, a lack of exposure of for-sale properties in the public market, and interest rates that encourage owners to withhold selling assets contributed to the depleted quantity and lackluster construction of new property.

The number of office and industrial properties declined by more than 18 percent and 27 percent, respectively. Cap rates for net-leased industrial properties also declined a modest five basis points. Meanwhile, cap rates on net-leased office properties increased four basis points.

Download the complete report (PDF).

via Net-Leased Retail Cap Rates Plummet | CCIM Institute.

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Categories: Investment
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