While the total number of net lease transactions fell 19% year-over-year in the third quarter, cap rates in the single-tenant net lease retail, office and industrial sectors reached a new all-time low in the third quarter of 2020, according to the 3rd Quarter Net Lease Research Report from The Boulder Group.
In the third quarter of 2019, the net lease sector saw 16,245 transactions trade for a total of $61.1 billion, according to The Boulder Group. In Q3 2020, 13,136 transactions trade for a total of $44 billion.
Compared to the second quarter of 2020, cap rates compressed by 19, 10 and 11 basis points respectively for retail, office and industrial. The retail sector experienced its largest cap rate decrease since 2014 as private and 1031 exchange investors aggressively sought the lower-priced assets this sector provided.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
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.
