Cap rates continued to dip from August to September. 2012 has been marked by cap rate decline and this trend shows no signs of morbidity or reversal. Low interest rates, lack of product and a flight to quality are all large contributors to this decline. However, with the capital gains rate set to increase, we could see more investors willing to sell.
Overall net lease retail cap rates fell from an average of 7.31% to 7.21%. Banks had the lowest average of 6.23% and the pharmacy segment dipped beneath 7% - reaching an average of 6.93%. All sectors surveyeyd witnessed cap rate decline, though there were no bold drops.
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