CHICAGO—Last year the cap rates for single tenant net leased banks sank to a historic low, but in the past 12 months investor demand has helped push those rates even lower, according to a new report from the Boulder Group, a net lease real estate firm located in suburban Chicago.
“The surprising thing is that banks were already getting a huge premium over the rest of the net lease market,” Randy Blankstein, president of Boulder, tells GlobeSt.com.
Median cap rates for bank ground leases descended to 4.35% in the first quarter of 2015, a 40 bps decrease since the first quarter of 2014. That widened the gap between banks and the overall retail market to 205 bps. Furthermore, this new record represents the lowest cap rate of all net lease sectors tracked by Boulder. Both national and regional banks, regardless of credit, comprise the bank ground lease sector.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
