Net Lease Market Brief
We recently completed our monthly survey of available, long-term leased Walgreens properties and wanted to share our findings. The average asking cap rate made the largest month-over-month increase since July of 2009. The average asking cap rate climbed six basis-points from 5.60% to 5.66%.
It is far too early to say that this is the beginning of an inflection, especially in light of the erratic movements of the 10-year treasury. Additionally, we would expect to see an increase of available inventory before cap rates move. We have found that the first indicator of a market correction is an increase in supply caused by slowing sale velocity. Cap rate is a lagging indicator as it can take several months for the lower demand to affect pricing.
One month of data does not reflect a trend, but we would not be surprised if the recent activity in the credit markets has become too much for the market to continue shrugging off.
Thomas Company provides single tenant, net leased investment brokerage and capital markets advisory nationwide. The firm serves individual and institutional investors, private equity funds, REITs, and developers throughout the United States, helping them execute transactions in the complex and growing single tenant net lease marketplace.
Jefferey Thomas Launches Thomas Company
Thomas Company was launched Monday as a privately held commercial real estate firm by one of the nation’s leading net lease investment brokers, Jeffrey Thomas. Thomas Company will serve individual and institutional investors, private equity funds, REITs and developers throughout the United States, helping them to execute transactions in the complex and growing single tenant, net leased investment marketplace. Real Capital Analytics estimates that these transactions constituted a $31 billion sector during 2012.
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Commercial Real Estate Veteran Launches Thomas Company
Thomas Company, a privately held commercial real estate firm, today announced its official launch by one of the nation’s leading net leased investment brokers, Jeffrey Thomas. Thomas Company will serve individual and institutional investors, private equity funds, REITs and developers throughout the United States, helping them to execute transactions in the complex and growing single tenant, net leased investment marketplace. Real Capital Analytics estimates that these transactions constituted a $31 billion sector during 2012.