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Specifically, the retail sector experienced the greatest cap rate compression by four basis points to 6.23%. Moreover, this was the first quarter of downward cap rate movement for the retail sector following five consecutive quarters of upward movement.
According to a report released by commercial brokerage firm Cushman & Wakefield, the statewide industrial vacancy rate hit a record low of 3.3%, while asking rents ended the second quarter at $9.27-per-square-foot), a record-high.
Deal flow has picked up since the first quarter, Yardi Matrix says, and points out that the drop in the 10-year U.S. Treasury rate to just over 2% could boost sales.
The report authors predict that millennials and baby boomers will continue to push household growth, sparking demand in the remodeling market and the demand for entry-level homes.