Randy Blankstein, president and founder, The Boulder Group, Wilmette, IL
WILMETTE, IL—After three successive quarterly increases, retail net lease cap rates were flat in 4Q 2018, ending the year at 6.25 percent, according to a new report from Wilmette, IL-based The Boulder Group.
“As the Federal Reserve continues to implement its monetary policy there is investor expectation that cap rates should trend upward in 2019,” says Randy Blankstein, president and founder, The Boulder Group. “The majority of property owners believe we are in the last stages of the current real estate cycle.”
While cap rates for retail properties were flat in the fourth quarter, in Boulder Group's research, retail cap rates increased 18 basis points for the year. Cap rates for office properties were essentially unchanged for the year with a nominal, two bps increase in the fourth quarter, to 7.02 percent. Industrial net lease cap rates were the only ones to decline for the year (16 bps) despite a five-bps increase in the fourth quarter.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.