Single Tenant Big Box Retail Cap Rates Decline

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Cap rates for single tenant big box retail properties declined by 4 basis points in the fourth quarter to 7 percent, according to The Boulder Group in its Q4 2019 Net Lease Big Box Report.

“Overall, there was nominal compression year over year,” says John Feeney, senior vice president for The Boulder Group. “This was primarily attributed to a decrease in cap rates across the entire net lease retail sector. Additionally, the 10-year treasury yield was down significantly over the same time period, which improved borrowing costs of buyers of this asset type.”