Interest in the net-lease retail segment remains elevated,thanks to strong supply and demand fundamentals…and the fact thatinvestors are hard-pressed to get good returns in other areas.

Strong investor interest has pushed cap rates in this niche downon a national basis, from north of 8% in the fourth quarter of 2010to 7.5% in Q3 2012, reports the Boulder Group.

Randy Blankstein, president of the Northbrook, IL-basednet-lease advisory firm, says, “Demand is the strongest it’s everbeen, driven primarily by low interest rates and the stability thatthe sector offers for predictable cash flow and safety.”

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.