The pressure's on net lease from the long span of rising interest rates, says a report from The Boulder Group.
In its 3rd Quarter Net Lease Research Report, the firm said that cap rates have been rising for the last six quarters and nationally stand at 6.51%.
"Single tenant cap rates increased to 6.27% (+10 bps) for retail, 7.41% (+14 bps) for office and 6.96% (+16 bps) for industrial in the third quarter," they wrote. "The consistent rise in interest rates continues to be the primary driver for the upward pressure on cap rates. Over the course of the third quarter, the 10 Year Treasury peaked at 4.68% which is almost 100 bps higher than the lowest level of 3.73% during the same time period."
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