Overall cap rates fell from July to August. This continues the trend of compression we have been witnessing. Low interest rates, lack of product and a flight to quality are all contributing to this decline. However, with the capital gains rate set to increase, we could see more investors willing to sell.
Of all sectors surveyed, banks had the lowest average cap rate of 6.25% - the highest were dollar stores at 7.98%. However, an average of dollar store cap rates below 8.00% speaks positively to that sectors continued viability.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
