Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NORTHBROOK, IL-Investors in net-lease properties have picked industrial properties as their favorite sector, according to 1031 exchange and net-lease specialists The Boulder Group. While industrial properties make up 18% of the current for-sale market in number, the price tags account for 25% of the net-lease market, according to the brokerage firm’s fourth-quarter report.

As a result, capitalization rates for industrial properties are running lower than other sectors. However, those industrial properties on the market for less than seven figures are trading at an average capitalization rate of 9.46%, while those selling above $10 million are trading at an 8.22% capitalization rate, according to The Boulder Group. In between, though, properties offered in the $4-million to $5-million range are on the market at a 6.65% cap rate.

“With the number of available industrial properties being so limited, now is the ideal time to consider disposing of industrial net-leased properties,” writes The Boulder Group research director Jeff Rothbart.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.