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October 2014 Net Lease Trend Report

As we progress into the 4th quarter cap rates are compressing throughout many net lease sectors.

By Jonathan Hipp | Updated on October 30, 2014

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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