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Net Lease Trend Report: April 2014

Net lease retail cap rates continue to remain low for 2014, with the average retail cap rate dipping to 6.79% from it's 6.94% average in February.

By Jonathan Hipp | Updated on April 17, 2014

Net lease retail cap rates continue to remain low for 2014, with the average retail cap rate dipping to 6.79% from it’s 6.94% average in February. Banks witnessed the biggest drop, going from 6.73% to 5.61%. Dollar Stores on the other hand jumped from 7.22% to 7.92%. However, it should be noted that newly built dollar stores traded in the mid to low 6% range. As has been the story with net leases, investors will pay a premium for long term leases and credit tenants (both Family Dollar and Dollar General are investment grade tenants).

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