Net lease cap rates began rebounding from all-time lows in the third quarter, with average cap rates ticking up five basis points to 5.44%, according to NNNetAdvisors.

Cap rates for the sector are still at their lowest point in 12 years, however, and have been slower to respond to market conditions, the firm's analysts say. The spread between the 10 year Treasury and medical cap rates hit a 12-year low in the third quarter, clocking in at 1.5%, a 280 basis point decrease from 4% a year ago.

"The decreasing margin between the costs of capital and net lease cap rate levels continues to put strain on the market and is resulting in both upward pricing pressure and decreasing sales volume," analysts at NNNetAdvisors say. "Exchange buyers continue to be motivated, while institutional buyers do their best to either stay put or push pricing as far as they can. Many private buyers with dry powder continue to patiently wait out the net lease market for better buying opportunities as the current pricing for stocks, bonds, and other more liquid investments offer a less risky profile and higher short run returns."