CHICAGO—Cap rates for single tenant net leased banks have sunk to their lowest level in years, according to a study recently released by the Boulder Group, a commercial real estate services firm located in suburban Chicago. Last month, reported that cap rates for drug stores like Walgreens had also hit historic lows, but the data show that investors find banks the most appealing, and over the last four years the gap in cap rates between banks and other retail has widened to about 200 bps. Prior to the recession, that gap was usually about 50 bps.

“Banks typically the only net lease investments that offer leases of over 15 years, investment-grade tenants and include built-in rental escalations,” Randy Blankstein, president of Boulder, tells “A lot of people worry about inflation down the track and rental escalations alleviate that concern.”

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