Triple Net Lease Single Tenant Cap Rates

by The Real Estate Buyers

in ,

Triple Net Cap RatesIn 2011 we are seeing the substantial cap rate compression from previous years in the past for core net leased assets. As 2010 ended the market saw multiple investors competing for core assets. The national asking cap rates in 2011 for the single tenant retail sector are currently 8.00%. The national asking cap rates the office sector are 8.10%.

Transaction level in 2011 is anticipated to decrease from 2010 levels which was very high and driven by low interest rates, greater financing availability and a very large supply of properties available for disposition as a result of limited investment sales in the previous year.

One of the main factors that may slow transaction volume is anticipated interest rate increases as well as a continued lack of new development. If cap rates increase and prices decrease we may see owners of assets more reluctant to sell as opposed to when cap rates where compressing in previous years.

The national single tenant net lease market fundementals do remain stable and many investors still demand the passive turnkey investment model of single tenant triple net lease real estate investments.

Single Tenant Median Asking Cap Rates

Walgreen’s Cap Rate Median Asking Rate is 7.00%

CVS Cap Rate Median Asking Rate is 7.29%

Dollar General  Cap Rate Median Asking Rate is 8.51%

Resteraunts  Cap Rate Median Asking Rate is 7.76%

McDonalds Cap Rate Median Asking Rate is 5.75%

Leasholds Cap Rate Median Asking Rate is 8.75%

Banks  Cap Rate Median Asking Rate is 6.75%

FedEx  Cap Rate Median Asking Rate is 8.10%

As always consider factors like location & lease term that will effect cap rates for single tenant triple net lease investments.

If you are considering acquisition or disposition of single tenant investment properties contact us, we can assist withe following core services:

Net Lease Seller Representation
Net Lease Buyer Representation
Financing Solutions
1031 Investment Property Exchange Services
Portfolio Analysis
Tenant Credit Analysis & Real Estate Due Diligence
Valuation Analysis
Investment Strategy
Market/Demographic Evaluation
Real Estate Due Diligence

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