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.

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