AutoZone store.
Cap rates for the single tenant net leased auto parts store sector increased by 18 basis points to 6.44%, from the fourth quarter of 2018 to the fourth quarter of 2019, according to the Q42019 Net Lease Auto Parts Store Report published by Wilmette-based The Boulder Group.
An increase in the supply of vintage properties with shorter lease terms remaining drove the rise in cap rates. "It is better for financing and better to know for sure you have your tenant in place," says Randy Blankstein, President of The Boulder Group. "With shorter lease terms, rollover risk happens sooner."
In the fourth quarter of 2019, the median remaining lease term for the sector decreased to seven years. One year earlier, it was nine years.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
