As we progress into the 4th quarter cap rates are compressing throughout many net lease sectors. Overall, net lease retail cap rates dropped by 19 bases points from 6.94% in September to 6.75% in October. The sector with the lowest average cap rate continues to Banks at 5.13%. Dollar Stores saw a significant decrease of 51 basis points from 7.15% in September to 6.64% in October. It should be noted that these averages do not take into account details such as lease term, increases, corporate vs franchisee guarantee etc. Across all sectors properties with long term leases trade for much lower rates than the overall average.
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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.
