The Net Lease Market In One Word
The first quarter of 2017 can be summed up with a single word: Stable. According to our Calkain research team, the entire market only moved 11 bps.…
May 11, 2017 | by JONATHAN HIPP | GlobeSt.com
The first quarter of 2017 can be summed up with a single word: Stable. According to our Calkain research team, the entire market only moved 11 bps. This lack of movement was driven by the Dollar Store and Pharmacy sectors.
The Dollar Store sector saw cap rates fall by 16 bps, in line with the overall market movement. The movement of the major tenants, Family Dollar (-28 bps) and Dollar General (-15 bps), paints a deceiving picture. When looking at prime deals (10+ years remaining on the lease), the movement goes from small to near zero. Prime Family Dollar deals fell a mere 16 bps to 6.18% while prime Dollar General deals fell by 3 bps to 6.65%.
