Ample liquidity remains in the US net lease market despite easing momentum in the second half of last quarter, with what analysts at JLL are calling "real-time pricing discovery" underway leading into the second half of the year.
Deals are repricing versus peak values, with further pressure expected as rate hikes continue. Market participants are contending with the impacts of inflation and the Fed's response and while initially re-pricing was debt-driven, a broader assessment of risk is now afoot. The average cap rate for the office sector was 6.3%, a 20 bps change year-over-year, while industrial clocked in at 5.6% (up 10 bps), and retail was 5.8% (down 20 bps year-over-year).
Excluding entity-level deals, Q2 single tenant volume was off 20% from a record first quarter, according to JLL and Real Capital Analytics data.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
