The Boulder Group released its 2024 Q1 review of the net lease market. "Cap rates in the single tenant net lease sector increased for the eighth consecutive quarter within all three sectors in the first quarter of 2024," the report said. "Single tenant cap rates increased to 6.42% (+7 bps) for retail, 7.60% (+5 bps) for office and 7.02% (+2 bps) for industrial."
The amounts weren't large, but the ongoing string of upward increases is significant, Boulder Group President Randy Blankstein tells GlobeSt.com.
"What was surprising in Q1 was starting with a lot of optimism," he says. "A lot of properties were brought to market in January." Many had adjusted pricing because sellers assumed that as the year went on, interest rate cuts would "magically appear," so they could be patient.
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