National asking cap rates in the single-tenant big box sector decreased to 6.25% in the fourth quarter of 2021, representing a 50-basis point decrease when compared to the prior year.

According to Boulder Group's 2021 Net Lease Big Box Report, "The decrease in cap rates can be primarily attributed to increased activity in the big box sector from substantial amounts of capital targeting this sector, particularly institutional investors," president Randy Blankstein said in prepared remarks. "Once the economy began to recover from the initial pandemic, activity within the sector increased."

In Q4 2021, less than 10% of the net lease big box sector was comprised of investment grade grocery related or home improvement tenants. Properties with these tenants were priced at an even greater premium.