Convenience stores are seeing steady investment volume and state compared to peer asset classes, according to a new report from Avison Young.
"While a slight uptick in average cap rates was observed toward the close of 2023, this pales in comparison to other product types such as office buildings," they wrote. "An interesting observation is the deviance between C-Store cap rates and U.S. 10-Year Treasury yields, which have historically had a direct relationship."
The future of cap rates is uncertain, as the report notes. On one hand, the Federal Reserve, which signaling an expectation of rate cuts this year is also warning that it won't back down from reducing inflation. But Wall Street expects the cuts to happen, which would likely mean that cap rates would steady and then drop with the lower costs of investment.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
