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While net lease is one of the most durable segments incommercial real estate, the coronavirus pandemic thwartedfirst-quarter sales, according to Avison Young's Q1 2020 Cap RateReport.
The net lease sector's sales activity fell from 586 deals in Q42019 to 416 in Q1 2020. Despite that decline, cap rates droppedseven basis points 6.58% to 6.51%. That may be partiallyattributable to the average lease term increasing from 10.5 yearsto 11.6 years.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
