The Q3 report published by Boulder Net Leased Funds was not too rosey, showing cap rates were not tracking with rising interest rates. However the Q4 report paints a slightly different picture with the supply of net-leased properties on the rise. This should bode well to get these cap rates a little more in-line with rates.
Not to fear though according to Grubb & Ellis. This trend is not going to continue through the roof. The Wall Street Journal reported last week on a survey of 278 big-time real estate investors. 42% percent of the respondents answered that the market should stay strong while 29% of the respondents think the market will sour within 3 years. About 19% of the respondents feel the market strength will continue for more than five more years.
Here's a link to the Boulder Net Leased Report. This report is worth a read if you find yourself involved in net-leased transactions.
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