Friday, July 8, 2016

As Net Lease Cap Rates Remain Low, Auto Parts Tenants Shine

auto parts tenantsAfter the second quarter came to a close, median retail cap rates held steady at 6.18 percent, as property owners and investors engaged in tougher negotiations over final pricing before closing sales, according to the latest net lease market report from The Boulder Group. Auto parts retailers were best-positioned as tenants in the quarter.

“It was just a matter of pricing,” says John Feeney, a vice president at The Boulder Group, headquartered in Northbrook, Ill. Property owners have tried to take advantage of the low cap rate environment to get the most attractive pricing for their listings, according to the report. Investors, however, bargained harder to get what they feel is the best value for their capital.. . . more

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