{"id":1004147499,"date":"2016-07-06T10:20:53","date_gmt":"2016-07-06T18:20:53","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004147499"},"modified":"2022-12-08T04:30:13","modified_gmt":"2022-12-08T12:30:13","slug":"net-lease-supply-on-the-rise","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/","title":{"rendered":"Net Lease Supply on the Rise"},"content":{"rendered":"<p>By Randy Blankstein, President, The Boulder Group<\/p>\n<div id=\"attachment_1004138034\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004138034\" data-attachment-id=\"1004138034\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/net-lease-auto-parts-sector-outpaces-market\/randyblankstein\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg\" data-orig-size=\"800,600\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"RandyBlankstein\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg?w=800\" class=\"size-medium wp-image-1004138034\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg\" alt=\"Randy Blankstein, President, The Boulder Group\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg?resize=768,576 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004138034\" class=\"wp-caption-text\">Randy Blankstein, President, The Boulder Group<\/p><\/div>\n<p>Cap rates for the single-tenant net lease retail sector remained unchanged in the first quarter, sustaining their historic low rate of 6.18 percent. During the same timeframe, cap rates for the office and industrial sectors increased to 7.25 and 7.26 percent, respectively. While cap rates remained stable in the second quarter, an influx of net lease assets entered the market, increasing the total supply by approximately 11 percent.<\/p>\n<p>Cap rates in each of the\u00a0major sectors remained unchanged or increased in the second quarter. While the strong demand from 1031 and private buyers kept retail cap rates firm, the volatility of the capital markets was\u00a0a contributing factor to office and industrial increases. Historically, institutional capital has been the buyer for these\u00a0assets; however, institutional investors have been\u00a0more sensitive to the volatility of the financing markets in 2016, and have adjusted cap rates accordingly. Throughout the second quarter, the 10-year Treasury yield ranged from as high as 1.94 to\u00a0as low as 1.45.<\/p>\n<p>Despite cap rate stability in the second quarter, the spread between asking and closed pricing increased for retail and office properties by two\u00a0and nine basis points, respectively. Owners of net lease product have attempted to take advantage of the low cap rate environment over the course of 2016 with aggressive pricing. The widening of the spread between asking and closed cap rates illustrates the cap-rate pushback from buyers on the aggressively priced assets. As a result, the marketing time for single-tenant properties has lengthened by approximately 11 percent when compared to the prior quarter.<\/p>\n<p>The net lease market is expected to remain active in 2016, as investors continue to seek safe and stable returns. The majority of net lease participants expect cap rates to hold steady for the near term; however, the perception is that there is upward pressure on cap rates. With the recent events in Europe and the subsequent drop in the 10-year Treasury, volatility is expected to increase for the near term.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Randy Blankstein, President, The Boulder Group: What does an influx of net-leased assets this quarter mean for the strength of the sector for the remainder of 2016?<\/p>\n","protected":false},"author":1224,"featured_media":1004138034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21748,23891,21747,21749,21684],"tags":[],"class_list":["post-1004147499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial","category-national","category-office","category-retail","category-viewpoint"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Net Lease Supply on the Rise - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Net Lease Supply on the Rise\" \/>\n<meta property=\"og:description\" content=\"By Randy Blankstein, President, The Boulder Group: What does an influx of net-leased assets this quarter mean for the strength of the sector for the remainder of 2016?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-07-06T18:20:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T12:30:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Randy Blankstein\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/\",\"name\":\"Net Lease Supply on the Rise - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg\",\"datePublished\":\"2016-07-06T18:20:53+00:00\",\"dateModified\":\"2022-12-08T12:30:13+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/f343578fa0947ffe2beaf0d148360706\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg\",\"width\":800,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Net Lease Supply on the Rise\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/f343578fa0947ffe2beaf0d148360706\",\"name\":\"Randy Blankstein\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5c41a5303e6570b1ce04a9f63697b70a98706698240408d36f98b72771242555?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5c41a5303e6570b1ce04a9f63697b70a98706698240408d36f98b72771242555?s=96&d=mm&r=g\",\"caption\":\"Randy Blankstein\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/randyblankstein\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Net Lease Supply on the Rise - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/","og_locale":"en_US","og_type":"article","og_title":"Net Lease Supply on the Rise","og_description":"By Randy Blankstein, President, The Boulder Group: What does an influx of net-leased assets this quarter mean for the strength of the sector for the remainder of 2016?","og_url":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2016-07-06T18:20:53+00:00","article_modified_time":"2022-12-08T12:30:13+00:00","og_image":[{"width":800,"height":600,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg","type":"image\/jpeg"}],"author":"Randy Blankstein","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/","url":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/","name":"Net Lease Supply on the Rise - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg","datePublished":"2016-07-06T18:20:53+00:00","dateModified":"2022-12-08T12:30:13+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/f343578fa0947ffe2beaf0d148360706"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg","width":800,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/net-lease-supply-on-the-rise\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Net Lease Supply on the Rise"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/f343578fa0947ffe2beaf0d148360706","name":"Randy Blankstein","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5c41a5303e6570b1ce04a9f63697b70a98706698240408d36f98b72771242555?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5c41a5303e6570b1ce04a9f63697b70a98706698240408d36f98b72771242555?s=96&d=mm&r=g","caption":"Randy Blankstein"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/randyblankstein\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/02\/RandyBlankstein.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004147499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1224"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004147499"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004147499\/revisions"}],"predecessor-version":[{"id":1004612812,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004147499\/revisions\/1004612812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004138034"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004147499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004147499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004147499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}