CHICAGO—Cap rates in the net lease market went on a long-termslide for several years as the economy recovered from therecession, with single tenant retail properties experiencinganespecially steep drop. But the rates for all propertytypes stabilized about 18 months ago, and signs now point tolikely increases in the coming year.
In a recent national survey conducted by The BoulderGroup, a Northbrook, IL-based net lease firm, the vastmajority of active net lease participants expect cap rates to risein 2018. According to 39% of the respondents, rates will increasebetween 25 and 49 bps by the end of 2018, and another 22% say rateswill go up by more than 50 bps. Just 9% think rates will movedown.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
