{"id":1004552650,"date":"2021-10-05T04:29:05","date_gmt":"2021-10-05T12:29:05","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004552650"},"modified":"2022-12-08T04:29:28","modified_gmt":"2022-12-08T12:29:28","slug":"why-single-tenant-net-lease-cap-rates-hit-historic-lows","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/why-single-tenant-net-lease-cap-rates-hit-historic-lows\/","title":{"rendered":"Why Net Lease Cap Rates Hit New Lows"},"content":{"rendered":"

In the third quarter, cap rates in the single-tenant net lease sector dropped to historic lows for office (6.80 percent) and industrial assets (6.70 percent), according to a new report by The Boulder Group.<\/p>\n

The reasons behind these record lows were \u201csignificant investor demand combined with limited supply of quality net lease assets,\u201d Randy Blankstein, president of The Boulder Group, said in a prepared statement.<\/p>\n

\n

READ ALSO<\/strong>: Why Secondary Cities Are Pulling Ahead<\/a><\/p>\n

\n

He added that the 10-year Treasury yield decreased in the third quarter to its lowest levels since the first quarter of this year.<\/p>\n

Despite the fact that net lease asset pricing reached all-time highs and helped persuade owners to put office properties on the market<\/a>, the report noted that supply in the industrial sector actually declined by more than 11 percent in the third quarter.<\/p>\n

Jimmy Goodman, a partner at Boulder, said in a prepared statement that the significant demand for industrial assets is causing many transactions to occur prior to a public marketing process. This contributed to the decline in supply of net lease industrial product, he explained.<\/p>\n

Boulder expects net lease transaction activity to stay active throughout the rest of this year and to continue through 2022. The potential pitfall is that demand could collide with supply pipeline issues.<\/p>\n

Looking ahead<\/h2>\n

Since the American Families Plan was announced at the end of April, investors have been paying close attention to potential tax changes that might arise from it. The bill calls for increases in the top brackets for both income tax and capital gains tax.<\/p>\n

In mid-September, Boulder notes, the House Ways and Means Committee released its tax proposal, which did not include changes to or the elimination of Section 1031 exchanges.<\/p>\n

Any legislative changes \u201ccould impact the overall net lease market,\u201d according to Blankstein.<\/p>\n

Read the full report by The Boulder Group<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Boulder Group\u2019s latest report looks at what\u2019s ahead for investment in the single-tenant sector.<\/p>\n","protected":false},"author":882,"featured_media":1004497852,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742,21747],"tags":[48950,33840,33428,32940,34803],"class_list":["post-1004552650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","category-office","tag-coronavirus","tag-jimmy-goodman","tag-randy-blankstein","tag-the-boulder-group","tag-triple-net-properties"],"acf":[],"yoast_head":"\nWhy Net Lease Cap Rates Hit New Lows - 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\/why-single-tenant-net-lease-cap-rates-hit-historic-lows\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Net Lease Cap Rates Hit New Lows\" \/>\n<meta property=\"og:description\" content=\"The Boulder Group\u2019s latest report looks at what\u2019s ahead for investment in the single-tenant sector.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/why-single-tenant-net-lease-cap-rates-hit-historic-lows\/\" \/>\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=\"2021-10-05T12:29:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T12:29:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/12\/business-3Image-by-Mohamed-hassan-via-Pixabay.com_720.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"642\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\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\/why-single-tenant-net-lease-cap-rates-hit-historic-lows\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/why-single-tenant-net-lease-cap-rates-hit-historic-lows\/\",\"name\":\"Why Net Lease Cap Rates Hit New Lows - 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