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Boulder Says Cap Rates at Historic Lows

CHICAGO- The firm has released a study showing that a limited supply of properties, especially new construction, has continued to have an effect.

By Brian J. Rogal | Updated on April 07, 2013

CHICAGO- The cap rates for the single-tenant net-leased market remained at historic lows during the first quarter of 2013, according to The Boulder Group, a commercial real estate services firm located in suburban Chicago. The cap rates for industrial and office properties went down while those for retail were unchanged from the last quarter.

The firm also found that the supply of properties, especially new construction, continues to have a major impact. “Overall property supply across the entire net lease sector decreased by more than 17% from the fourth quarter of 2012 to the first quarter of 2013,” the firm says. Only 2,392 properties were added to the retail sector, a decline of 16% from last quarter. Furthermore, only 213 properties were added to the office market, a decline of more than 34%.

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