Cap rates in the single-tenant, net-lease sector reached historic lows for all three asset classes in first quarter 2022, according to The Boulder Group in its First Quarter Net Lease Research Report. Single-tenant cap rates compressed by 13, 10, and 17 basis points for the retail, office and industrial categories respectively. Cap-rate compression continues to be derived from the significant demand for net-lease properties across all investor classes.
“Following record transaction volume in 2021, net lease sales velocity continued in the first quarter of 2022,” said Randy Blankstein, president, The Boulder Group. “Transaction volume in the first quarter of 2022 exceeded the first quarter of 2021 by more than 10 percent for the net lease sector.”
Despite the record transaction volume in 2021, the overall net lease property supply declined by more than 5 percent in first quarter 2022.
“Supply chain issues and delayed expansion plans for reta
