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).
In other news, Broadstone Net Lease (BNL) announced the acquisition of 19 properties for over $52.6 million so far in 2014 - taking their total market capitalization to over $800 million.
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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.
