Private Buyers Crowd Out Institutions in Net Lease Market- From NREI

Based on figures from the first half of 2014, investor demand in the net lease sector has caused cap rates to further compress. Cap Rates for retail properties are at historic low levels, with the spread between retail and office/industrial the largest its been in 15 years. Based on data from NREI, cap rate averages for retail are at 6.50, office is at 7.77 and industrial at 7.97. The demand from private buyers, who clearly prefer retail to both industrial and office, is causing institutional investors to chase yields elsewhere. Randy Blankstein at the National Real Estate Investor has the story

About Ernie Saltmarsh

Ernie works for Colliers International in the Northeast Florida Investment Services Group. The team includes Robert Selton, Scott Rogers, Ernie Saltmarsh and Adrienne Miller. Ernie works with buyers who are looking to invest in commercial real estate and sellers who are looking to dispose of investment assets. Ernie's background in research, marketing and finance provide the vital skills necessary to serve his clients.

Posted on August 11, 2014, in General CRE News/Reports, Market Reports/Statistics, Single Tenant Net Leased (STNL) and tagged , . Bookmark the permalink. Leave a comment.

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