Research - DECEMBER 2, 2020

To read this full article you need to be subscribed to Newsline.

Sign in Sign up for a FREE subscription

Single-tenant medical properties with investment-grade tenants in short supply

by Andrea Zander

In the third quarter, national asking cap rates in the single-tenant medical sector increased to 6.5 percent, according to the 2020 Net Lease Medical Report by The Boulder Group. This represented a 5 basis point increase when compared to the prior year.

“The primary reason for the slight increase in cap rates for the net-lease medical sector is attributed to the higher concentration of non-investment-grade tenants in the sector,” said Randy Blankstein, president, The Boulder Group.

According to the report, non-investment-grade tenanted properties made up 89 percent of the supply in the third quarter. Despite investor concerns surrounding the COVID-19 pandemic for the overall net-lease sector, the net-lease medical sector saw an uptick in transaction volume through the third quarter of 2020.

“When compared to 2019, transaction volume in the third quarter for the net-lease medical sector increased by approximately 6 percent,” added Jimmy Goodman,

Forgot your username or password?

We use cookies and other tracking technologies to personalize your user experience on our site and perform site analytics. By clicking on “I accept”, you consent to our Privacy Policy.