Net Lease Trend Report: April 2014
Net lease retail cap rates continue to remain low for 2014, with the average retail cap rate dipping to 6.79% from it's 6.94% average in February. Banks witnessed the biggest drop, going from 6.73% to 5.61%. Dollar Stores on the other hand jumped from 7.22% to 7.92%. However, it should be noted that newly built dollar stores traded in the mid to low 6% range. As has been the story with net leases, investors will pay a premium for long term leases and credit tenants (both Family Dollar and Dollar General are investment grade tenants).
In other news, Broadstone Net Lease (BNL) announced the acquisition of 19 properties for over $52.6 million so far in 2014 - taking their total market capitalization to over $800 million.
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Don't miss RealShare NET LEASE in New York on April 15-16.