CHICAGO—As reported in Globest.com, cap rates for single tenant net leased banks recently sank to a historic low as investors continue to choose the security that comes from the investment-grade companies in the space.
In addition to the robust demand, there has also been a 30% drop in supply of these ground leases over the past year, helping to lower cap rates even further. 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.
Guy Ponticiello, a Chicago-based managing director at JLL, leads its corporate finance and net lease group, a national practice group, and helps corporations align their real estate occupancy strategy with their financial objectives. He is also works extensively with investors and developers in the sale of net lease properties. He spoke with GlobeSt.com on how he sees the retail banking sector and what he advises clients interested in such properties.
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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.
