As investors chased big box assets with investment-grade, essential tenants, cap rates in the single tenant net lease big-box sector decreased by 25 basis points to 6.75% from Q4 2019 to Q4 2020, according to The Net Lease Big Box Report from The Boulder Group.
Properties with grocery related tenancy accounted for more than 30% of the market, up 22% from 2019. But properties with tenants, such as Walmart, Costco, Target, Home Depot and Lowe's also did well.
"Big boxes are highly divided, and clearly, things like Lowe's, Home Depot, Costco and Target did great during COVID," says Randy Blankstein, President of The Boulder Group. "So that is the stuff that traded."
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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.
