(Save thedate: RealShareChicago comes to the Union League Club ofChicago October23.)
CHICAGO-The supply-demand ratio for core single-tenant,net-lease retail properties continues to shrink,forcing cap rates to do the same. Whereas most investments, such asbonds and stocks, have seen low yields, net-lease retail has anaverage cap rate of about 7.5% to 7.7% - if available at all.
Second quarter reports from Chicago-based net-lease companiesBoulder Group and Quantum Real EstateAdvisors Inc., and today's GlobeSt.com exclusive interview,detail the compression of core net-lease property in top markets.Dan Waszak, VP with Quantum, says core markets such as NewYork City or Los Angeles have cap ratesthat are down about 175 basis points, and assets withinvestment-grade tenants such as Walgreens or Chase Bank are stillthe standard, commanding cap rates between 5.5% and 6.5%.
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