B+E, an investment brokerage firm specializing in net-lease real estate and 1031 exchanges, has released its Q3 2024 Net Lease Cap Rate Report, finding cap rates continue to rise consistent with the trend set in second quarter 2024, with average cap rates increasing by 17 basis points quarter-over-quarter to 6.45 percent.
Retail cap rates have risen by an average of 13 basis points quarter-over-quarter, with some sectors such as grocery and pharmacy increasing by 32 basis points and 28 basis points, respectively. Cap rates have remained stable for quality tenants such as 7-Eleven, which saw a rise of 9 basis points, and Chipotle, which saw a rise of only 6 basis points.
But despite the rise in cap rates across several prominent sectors within retail, cap rates for convenience stores and casual dining have dropped 7 basis points and 14 basis points, respectively.
The report also found many sectors have seen a double-digit basis point rise in on-market su