In the first quarter, the single-tenant net lease sector reached historic lows for the retail and industrial sectors, according to new research from The Boulder Group.

In Q1, single-tenant retail cap rates compressed by nine basis points to 5.91%. Industrial cap rates fell four basis points to 6.71%, while office cap rates rose five basis points to 6.95%

For retail and industrial, the story of Q1 was strong demand with limited quality supply. "There is still this flight to safety," Randy Blankstein, president of The Boulder Group, tells GlobeSt.com. "The stock market is all over the place, as is the bond market. One minute everyone thinks interest rates are going up substantially, and the next moment they pull back. With all this uncertainty, there's still a flight to safety, and everyone is trying to grab a safe yield."

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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.

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