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2011 Summer Cap Rate Report

Net lease cap rates averaged 7.75% for the first quarter of 2011 continuing the drop in cap rates that began in the second half of 2010.

By Jonathan Hipp | Updated on June 22, 2011

Net lease cap rates averaged 7.75% for the first quarter of 2011 continuing the drop in cap rates that began in the second half of 2010.  The key driver in this trend has been an increased demand for high quality net lease properties – assets which feature a strong credit tenant, good location, and favorable lease terms – and the scarce supply of those high quality assets.  Investors have clearly shown a lopsided preference for these NNN investment properties and as 2011 progresses, demand will outpace supply. 

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