Cap rates for net lease properties continued to compress in the third quarter, with the quick service restaurant, automotive, and early learning sectors seeing the largest increase in onmarket properties, according to a new report from B+E Net Lease.
Industrial warehouse assets had the most compression in cap rates across all sectors in the third quarter, and B+E experts say they expect further activity across all sectors before year's end.
"Although lease terms for single tenant industrial properties tend to be shorter than other property types, investors place their bets on high credit tenants remaining in place," the report notes.
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