According to a new market analysis by Jeffrey Thomas,Seattle-based senior vice president in the net-leased propertiesgroup of CB Richard Ellis Group Inc., average asking cap rates forWalgreens properties rose to 6.82% in January. Thomas predictsanother approximately 100-basis-point increase in cap rates forWalgreens assets before the year is over.

Early last summer, Thomas found asking cap rates for Walgreensproperties averaged 6.48%.

"We see nothing that suggests a reversal in this pricing trend,and expect the Walgreens average asking cap rates to break 7% verysoon and continue north throughout the year," according to Thomas'recent market update. "We fully expect to see the Walgreens averageasking cap rate reach 8% at some point in 2009 and for continuedcap rate expansion across the net-leased market."

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