Supply has increased across all net-lease property types since August 2024, with newly available listings accounting for 34 percent of properties on the market, according to B+E’s fourth quarter 2024 Net Lease Cap Rate Report. Dining, banking and convenience store sectors have seen the largest supply increases, while auto parts and pharmacy sectors saw the smallest supply growth.
The report tracked increases in retail cap rates, with dollar store and grocery sectors rising by 23 basis points and 19 basis points, respectively. While all sectors have experienced growth in cap rates, some only have had minimal cap rate adjustments since the previous quarter, such as convenience stores.
There has been a 28 percent increase in available properties in the industrial sector, with a 27 percent increase in the distribution sector. Major industrial companies have an average cap rate of 6.55 percent with an average lease term of six years.
Throughout the past ye
