In the fourth quarter, national asking cap rates in the single-tenant auto sector decreased 48 basis points to 5.89%, according to the 2020 Net Lease Auto Report from The Boulder Group.
New construction with longer-term leases drove the cap rate decline in the auto sector, consisting of various auto-related tenants in the parts, service and collision sectors. New development is primarily concentrated in the service and collision sectors where major tenants, such as Caliber Collision, continue to expand their footprints nationally.
"These guys are all expanding because they think they can take market share from the local shops," says Randy Blankstein, president of The Boulder Group.
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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.
