CHICAGO—Thenational net leasemarket continuesto be intensely competitive and entice a record number ofinvestors. Cap rates in the first quarter of 2016 for the singletenant net lease retail and industrial sectors reached a newhistoric low rate of 6.18% and 7.10% respectively, according to areport just published by the BoulderGroup,a net lease firm located in suburban Chicago. But cap rates for theoffice sector did increase by 20 bps to a cap rate of7.20%.
Privateand 1031buyers continue to prefer retailassets and that preference pushes the sector's cap rates below thatof net lease office and industrial properties. “Private and 1031buyers are more familiar with retail tenants, prefer the lowerprice points and understand the general business practices of thesetenants when compared to industrial or office tenants,” accordingto the report.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
