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MARKET REPORT
Q2 2016
NATIONAL ASKING CAP RATES
MARKET OVERVIEW
Cap rates in the first quarter of 2016 for the single tenant net lease
retail sector remained unchanged at their historic low rate of 6.18%.
During the same timeframe, cap rates for the office and industrial
sectors increased to 7.25% and 7.26% respectively. While cap
rates remained stable in the second quarter, an influx of net lease
assets entered the market this quarter increasing the total supply by
approximately 11%.
Q1 2016
(Previous)
Q2 2016
(Current)
Basis Point
Change
Retail
6.18%
6.18%
Office
7.20%
7.25%
+5
Industrial
7.10%
7.26%
+16
Sector
NUMBER OF PROPERTIES
ON THE MARKET
Sector
Q1 2016
(Previous)
Q2 2016
(Current)
Percentage
Change
Retail
3,029
3,310
+9.3%
Office
311
395
+27.0%
Industrial
294
346
+17.7%
Q1 2016
(Previous)
Q2 2016
(Current)
Basis Point
Change
Retail
24
26
+2
Office
21
30
+9
Industrial
37
28
-9
Sector
www.bouldergroup.com
Sector
Tenant
City
Price
Per SF
Cap
Rate
Lease Term
Remaining
Apr-16
Industrial
FedEx
Louisville
KY
$41,893,000
$138
5.91%
15
May-16
Industrial
FedEx
Mabelvale
AR
$31,715,000
$102
6.79%
10
May-16
Industrial
Jo-Ann Stores
May-16
Industrial
PPG Industries
Visalia
CA
$27,921,000
$44
6.74%
10
Aurora
IL
$27,700,000
$91
5.40%
12
May-16
Retail
Mariano's
Elmhurst
IL
$25,000,000
$329
5.90%
17
May-16
Retail
CarMax
Nashville
TN
$24,500,000
$445
7.10%
Jun-16
Retail
Home Depot
Henderson
NV
$23,162,000
$226
6.04%
12
May-16
Retail
CVS
Watertown
MA
$15,800,000
$1,098
5.07%
25
Apr-16
Retail
Home Depot
Seabrook
NH
$15,047,000
$110
5.25%
15
May-16
Retail
Mufreesboro
TN
$14,859,000
$345
5.17%
15
May-16
Retail
Easton
MD
$12,905,000
$205
6.35%
20
Jun-16
Retail
Walgreens
Towson
MD
$12,100,000
$979
5.66%
21
May-16
Retail
Walgreens
Chicago
IL
$11,275,000
$867
5.28%
15
Jun-16
Retail
Kohl's
Holland
MI
$7,875,000
$94
7.00%
10
May-16
Retail
Glenview
IL
$6,900,000
--
4.78%
13
Apr-16
Retail
Citibank
Park Ridge
IL
$5,126,000
$1,336
5.00%
10
Jun-16
Retail
Walgreens
Stockbridge
GA
$5,020,000
$332
7.17%
State
Price
Q1 2009
Q1 2010
Q1 2011
Q1 2012
Q1 2013
Retail
www.bouldergroup.com
Q1 2014
Q1 2015
Office
Q1 2016
Industrial
2011-2016
2006-2010
2000-2005
Pre 2000
7-Eleven
4.75%
5.50%
5.75%
6.65%
5.90%
6.75%
7.00%
7.50%
AutoZone
5.00%
5.50%
6.10%
N/A
4.20%
4.85%
5.10%
5.35%
Chase (GL)
4.35%
4.65%
4.90%
5.20%
CVS
5.00%
5.56%
6.25%
7.75%
DaVita
5.50%
6.63%
6.90%
8.25%
Dollar General
6.50%
7.38%
8.25%
9.09%
Family Dollar
6.28%
7.28%
8.00%
8.85%
FedEx
5.90%
6.65%
7.50%
9.85%
Fresenius
5.63%
6.65%
7.35%
8.20%
GSA
6.15%
6.70%
8.77%
N/A
McDonald's (GL)
4.05%
4.30%
4.70%
4.75%
5.58%
6.00%
N/A
6.71%
PNC (GL)
4.60%
4.75%
5.01%
N/A
Rite Aid
6.00%
6.68%
7.50%
8.50%
Walgreens
5.20%
5.80%
6.00%
6.28%
CONTRIBUTORS
Randy Blankstein | President
randy@bouldergroup.com
jimmy@bouldergroup.com
scott@bouldergroup.com
2016. The Boulder Group. Information herein has been obtained from databases owned and maintained by The Boulder Group as well as third party sources. We have not verified the information
and we make no guarantee, warranty or representation about it. This information is provided for general illustrative purposes and not for any specific recommendation or purpose nor under any
circumstances shall any of the above information be deemed legal advice or counsel. Reliance on this information is at the risk of the reader and The Boulder Group expressly disclaims any liability
arising from the use of such information. This information is designed exclusively for use by The Boulder Group clients and cannot be reproduced, retransmitted or distributed without the express
written consent of The Boulder Group.
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