NORTHBROOK, IL-Boulder Group's "Q3 Net Lease Market Report," which provides information about net-leased properties nationwide, notes that cap rates for single-tenant, net-lease properties have remained more or less steady year over year, while the development pipeline is still mainly empty. Though national asking cap rates for office properties declined slightly from the year before (dropping from 8.25% to 8%) and asking cap rates for industrial properties increased (from 8% to 8.2%), the asking cap rates on retail properties remained at 7.5%

The report, issued from locally based Boulder Group, explains that the retail property cap rates are unchanged because of a plateau of investor yield thresholds as cap rates continue at historic lows. Though the 10-year treasury's decline halted during Q3, cap rates weren't impacted because of a still-sluggish development pipeline.

Q3 saw a 7.8% decrease in supply for all three property sectors, leading to increased competition among net-lease investors. As a result of the increased competition, the bid-ask spread compressed by an average of six basis points compared to Q2.