Risk aversion is driving demand for this asset category, whose hallmark is the long-term nature of the leases and the credit underpinning the tenants, CBRE's Will Pike said.
Specifically, the retail sector experienced the greatest cap rate compression by four basis points to 6.23%. Moreover, this was the first quarter of downward cap rate movement for the retail sector following five consecutive quarters of upward movement.
According to a report released by commercial brokerage firm Cushman & Wakefield, the statewide industrial vacancy rate hit a record low of 3.3%, while asking rents ended the second quarter at $9.27-per-square-foot), a record-high.
Deal flow has picked up since the first quarter, Yardi Matrix says, and points out that the drop in the 10-year U.S. Treasury rate to just over 2% could boost sales.