After slumping in the second quarter, single-tenant net lease sales rose 13.8% in Q3, according to the U.S. Capital Markets Net Lease Group Cap Rate Report from Avison Young.
In all, 329 trades occurred in Q3, which was an increase compared to the 289 posted in Q2. Q3's sales figure was still well below the 416 transactions posted in Q1.
While sales increased from Q2 to Q3, the average cap rate across sectors rose 20 basis points, as the average remaining lease term dropped by half a year, according to Avison Young. However, if an asset had 10 or more years remaining on its lease, the cap rate decreased 14 basis points to 5.97%.
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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.
