How will decreasing cap rates and rising interests affect single tenant net lease property market values? Find out from single tenant experts Nancy Miller, SVP of Single Tenant Net Lease Group and Tim Kinney, VP Capital Markets of Marcus & Millichap. Highlights of this commercial real estate related video include:
- Nationally cap rates have gone down medical and single tenant industry from 6.42% in 2014 to 6.26% in 2017
- Transactions have decline from 6,325 tgo 6,300
- In southeast, transactions are about 2,500 and cap rates are 6.38% in 2016 down from 6.57% in 2014
- Lack of alternative investments has driven demand
- Consensus is that we will see pressure on long-term rates
- 10 year treasury has risen to 2.37 from 1.8 since election, the biggest most in 15 years
- Seeing developers that were quite greedy in past years now offering properties at incrementally higher cap rates
- Interest rates may lag cap rates as properties stay on market longer
- Average NNN property stays on market for 324 days, up from 310 days
- Believe we have seen the top of the market as cap rates edge higher