Randy Blankstein, president and founder, The Boulder Group, Wilmette, IL
WILMETTE, IL—After three successive quarterly increases, retail net lease cap rates were flat in 4Q 2018, ending the year at 6.25 percent, according to a new report from Wilmette, IL-based The Boulder Group.
“As the Federal Reserve continues to implement its monetary policy there is investor expectation that cap rates should trend upward in 2019,” says Randy Blankstein, president and founder, The Boulder Group. “The majority of property owners believe we are in the last stages of the current real estate cycle.”
While cap rates for retail properties were flat in the fourth quarter, in Boulder Group's research, retail cap rates increased 18 basis points for the year. Cap rates for office properties were essentially unchanged for the year with a nominal, two bps increase in the fourth quarter, to 7.02 percent. Industrial net lease cap rates were the only ones to decline for the year (16 bps) despite a five-bps increase in the fourth quarter.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
