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Net Lease Sector Slows in 2018 as Transactions Fall and Cap Rates Rise
Our H2 2018 Single Tenant Net Lease Retail Report states that the market for net lease retail properties in the U.S. weakened moderately in 2018, in contrast to the broad recovery in the broader commercial real estate (CRE) capital markets. Sales volumes fell sharply despite a significant pick-up in overall commercial property sales, especially in the retail sector. Similarly, capitalization rates (cap rates) rose modestly in the net lease sector as prices fell, while CRE markets overall saw stable-to-falling cap rates and positive price appreciation.
Our H2 2018 Single Tenant Net Lease Retail Report states that the market for net lease retail properties in the U.S. weakened moderately in 2018, in contrast to the broad recovery in the broader commercial real estate (CRE) capital markets. Sales volumes fell sharply despite a significant pick-up in overall commercial property sales, especially in the retail sector. Similarly, capitalization rates (cap rates) rose modestly in the net lease sector as prices fell, while CRE markets overall saw stable-to-falling cap rates and positive price appreciation.
