Overall cap rates dropped in August to an average of 6.58%. The sectors with the lowest cap rate averages were Banks (5.35%) and Pharmacies (6.29%). Dollar Stores had the highest average at 7.61%. That said, well located Dollar Stores with long term leases were seen trading in the mid to low 6 cap range. Typically deal flow slows somewhat in summer as people take vacations etc. The fourth quarter on the otherhand is marked by intense deal flow as people seek to get exchanges completed before the year ends.
Net lease properties continue to be a highly desired asset and a good play for any investor with the requisite capital.
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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.
