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  • March 01, 2017
    Net Lease Auto Parts Sector Outpaces Market

    Cap rates for the single-tenant, net-leased auto parts store sector decreased by 8 basis points from the fourth quarter of 2015 to the fourth quarter of 2016 to 5.9 percent. The decline in cap rates for the auto parts store sector slightly outpaced the overall net lease retail market, which compressed by 6 basis points over the same time period. The auto parts sector, for the purpose of this report, is defined as Advance Auto Parts, AutoZone and O’Reilly Auto Parts, as they account for the highest percentage of single-tenant transactions of properties occupied by auto parts retailers.
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  • February 02, 2017
    Big Box Retail Sees Jump In Cap Rates

    The decision by Macy’s, The Limited, and other retailers to close outlets around the US has shaken up the world of retail. And with some experts predicting that many more outlets will close this year, investors are definitely taking notice.
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  • January 18, 2017
    Net Lease Cap Rates Change Direction

    Cap rates in the fourth quarter of 2016 for the single-tenant net lease sector increased or remained the same for all three asset classes: retail, office and industrial. Retail cap rates experienced their first increase since the third quarter of 2013 to 6.19 percent cap rate. The 9-basis-point increase is the largest increase in retail cap rates since the second quarter of 2011. Cap rates for the office sector remained unchanged at 7.08 percent, while industrial sector cap rates increased by 3 basis points to 7.17 percent.
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  • January 06, 2017
    The coffee wars are on: Dunkin’ Donuts hopes to siphon at least some of Starbucks’ customers

    Dunkin’ Donuts is taking aim at Starbucks, expanding across the country — and on other continents — in an attempt to snatch business away from its higher-end rival. Just look at the numbers: Last year, Dunkin’ Donuts opened its 12,000 restaurant, a lcation in Riverside, California. This new restaurant was important not just because of that nice, round number. It’s also evidence of just how aggressive the chain has become in launching new locations.
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  • January 03, 2017
    Cap Rates for Net Leased Retail Properties Increase for First Time in Three Years

    Cap rates in the fourth quarter of 2016 for the single-tenant net lease sector increased or remained the same for office, retail and industrial assets, according to The Boulder Group’s quarterly Net Lease Market Research Report. Retail cap rates experienced their first increase since the third quarter of 2013 to 6.19 percent. The nine-basis-point increase is the largest quarterly increase in retail cap rates since the second quarter of 2011.
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  • December 01, 2016
    Investors Stay Interested In Health Clinics

    The single tenant medical sector remained popular with investors through the first three quarters of 2016, and several demographic factors will likely sustain that interest over the next few years, regardless of changes in the nation’s political landscape.
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  • November 02, 2016
    Net-Leased Drug Stores’ Rising Cap Rates

    Cap rates for single-tenant CVS, Rite Aid and Walgreens properties all increased significantly in the third quarter of 2016. Cap rates for the net-leased drug store sector increased by 51 basis points to a 6.0 percent cap rate when compared to the prior year. Rite Aid and Walgreens cap rates experienced the largest increases, at 35 and 37 basis points, respectively, due to investors’ concern about store closures with Walgreens’ potential acquisition of Rite Aid. In the same timeframe, CVS cap rates increased by 30 basis points.
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  • November 01, 2016
    Drug Store Cap Rates Jump, Reversing Long-Term Trend

    Reversing a long-term trend, cap rates for single tenant CVS, Rite Aid and Walgreens properties all increased significantly in the third quarter of 2016, according to a new report by the Boulder Group, a net lease firm in suburban Chicago. Investors seem most concerned by US antitrust regulators’ requirement that Walgreens sell between 500 and 1,000 stores before they will approve its plan to acquire Rite Aid.
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  • October 20, 2016
    Retail Single-Tenant Net Lease Cap Rates at Record-Lows

    Single-tenant net-lease cap rates for retail properties reached a record-low 6.10 percent in the third quarter, reported Boulder Group, Northbrook, Ill. STNL cap rates for the office and industrial sectors also decreased to 7.08 percent and 7.14 percent, respectively, said Boulder Group Vice President John Feeney. "The overall net-lease market remains active with 1031 and private investors due to the passive nature of the leases and attractiveness of relative investment returns when compared to other asset classes," Feeney said.
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  • October 05, 2016
    NET LEASE WAS GOLDEN IN Q3

    The stable yields of net-lease real estate continue to drive investor demand, compressing cap rates in the sector to levels not seen in years. That's according to net lease king The Boulder Group, which released its Q3 2016 net lease research report.
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  • October 04, 2016
    Retail Cap Rates Reach Another Historic Low

    Strong demand from 1031 and private investors pushed cap rates for the single tenant net lease retail sector down slightly to just 6.1%, another historic low, in the third quarter of 2016, according to a new report from the Boulder Group, a net lease investment firm in suburban Chicago. During the same period, cap rates for the office and industrial sectors decreased to 7.08% and 7.14% respectively, declines of 17 and 12 bps. Retail cap rates have stayed below 6.65% since early 2015.
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  • September 28, 2016
    Drugstore Sells At Lowest Cap Rate For A CVS In 2016

    Net leased investment brokerage firm, The Boulder Group, has completed the sale of the single-tenant new construction CVS Pharmacy ground lease located at 2501 N. Field St. for $14.89 million. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer in the transaction. The seller was a Texas-based real estate company which was represented by Landes Fairmont.
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  • September 07, 2016
    Net Lease Dollar Store Supply Moves Cap Rates Higher

    Cap rates within the single-tenant net lease dollar store sector increased by 15 basis points from the second quarter of 2015 to the second quarter of 2016, to a 6.65 percent cap rate. The dollar store sector, for the purpose of this report, is defined as free-standing Dollar General, Dollar Tree and Family Dollar properties, as these tenants represent the largest presence within the sector. Cap rates for Family Dollar assets remained unchanged, while Dollar General and Dollar Tree experienced increases of 10 and 15 basis point, respectively.
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  • September 01, 2016
    Cap Rates Hint at Tempered Growth for Discount Retailers

    In recent quarterly earnings periods, full-price retailers such as department stores and specialty retailers have been the companies to report weaker sales, revised annual guidance figures and planned store closures. Their reports underscored the challenges facing the retail sector impacted by an omni-channel revenue model.
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  • August 30, 2016
    Dollar Stores Remain Popular With Investors, Consumers

    The US dollar store sector has continued to expand in the past year due to consumers’ demand for low-cost goods. That expansion has also opened up a lot of opportunities for investors that want to jump into this robust segment of retail.
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  • August 02, 2016
    Quick Service Restaurants Drawing In Investors

    Cap rates in much of the single tenant net lease sector hit historic lows during the economic recovery, but recently those declines have moderated. The net lease quick service restaurant sector, however, saw its median cap rates sink to 5.7% in the second quarter of 2016, a compression of 10 bps from the prior year, according to a new report from the Boulder Group, a Northbrook, IL-based net lease firm.
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  • July 26, 2016
    Second annual Net Lease Conference brings in the big names

    Midwest Real Estate News held its second annual Net Lease Conference July 20 in Chicago. More than 160 net lease pros from around the country attended, all there to celebrate the continuing strength of the net lease business, in all sectors. Some of the biggest names in the net least industry shared their insights on why this part of the commercial real estate business continues to thrive.
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  • July 21, 2016
    Cap Rates Steady Despite Supply Jump

    Single-tenant net lease property cap rates held steady or increased just slightly in the second quarter even as significant new supply reached the market, reported Boulder Group, Northbrook, Ill. STNL retail sector cap rates remained unchanged at a historic low 6.18 percent while office cap rates increased five basis points to 7.25 percent and industrial cap rates increased 16 basis points to 7.26 percent, said Boulder Group Vice President John Feeney.
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  • July 06, 2016
    Net Lease Supply on the Rise

    Cap rates for the single-tenant net lease retail sector remained unchanged in the first quarter, sustaining their historic low rate of 6.18 percent. During the same timeframe, cap rates for the office and industrial sectors increased to 7.25 and 7.26 percent, respectively. While cap rates remained stable in the second quarter, an influx of net lease assets entered the market, increasing the total supply by approximately 11 percent.
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  • July 05, 2016
    Industrial Net lease Cap Rates Soar in Q2

    How did the net-lease sector fare in the first six months of 2016? Pretty darn well, according to The Boulder Group's Q2 market report. While retail net-lease cap rates remained steady between Q1 and Q2, office caps rose 5% to 7.25%, and industrial net-lease cap rates increased an amazing 16%, from 7.1% in Q1 to 7.26% in Q2.
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  • July 05, 2016
    Net Lease Cap Rates Headed Up

    Cap rates for net lease properties have been trending downward for more than five years, and recently sank to historic lows. But that long-term decline may be at an end. In the first quarter of 2016 cap rates for the single tenant net lease retail sector remained unchanged at their historic low rate of 6.18%, according to a report just issued by the Boulder Group, a net lease firm in suburban Chicago. However, during the same timeframe, cap rates for the office and industrial sectors increased 5 bps and 16 bps, respectively, to 7.25% and 7.26%.
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  • June 01, 2016
    Net Lease Casual Dining is Strong in Q1

    Retail has been golden in the first half of 2016. Net lease retail even more so, especially if you have a quick casual dining tenant occupying your assets. That's according to a new report from single tenant net lease kings The Boulder Group.
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  • May 20, 2016
    Bucktown Walgreens Sells For Big Number

    CHICAGO—An investor has just bought a single tenant net leased Walgreens property located in Chicago’s Bucktown neighborhood for $11,275,000. That big number helps illustrate just how desirable the neighborhood has become. New home construction has boomed in the blocks surrounding the property, and the new Bloomingdale Trail, also known as “The 606,” is just a short walk to the south and brings in thousands of walkers, runners, and bikers every day.
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  • April 28, 2016
    Net Lease Bank Rates Headed Up

    Net lease investors have for some time considered bank branches one of the best investments on the market, pushing down the cap rates for these properties to historically low levels. In the past year, however, things have changed, and rates took a big jump upward, according to a new study by the Boulder Group, a net lease firm in suburban Chicago.
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  • April 08, 2016
    Single-tenant retail property prices hit all time high: Report

    Cap rates for the single-tenant net-lease retail sector hit a historic low rate of 6.18 percent in the first quarter, according to Boulder Group’s quarterly survey. The spread between asking and closed cap rates on such properties was 24 basis points, up by 1 point from the previous quarter, the firm reports.
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  • April 07, 2016
    Who’s Winning the Grocery Race?

    Grocery chains might look like they have it easier than apparel retailers. They fall under the “necessity retail” grouping, after all, and which household doesn’t need to stock up on everything from paper goods to produce regularly?
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  • April 07, 2016
    Some STNL Sectors See Record-Low Cap Rates

    Single-tenant net lease cap rates for retail and industrial properties reached record lows of 6.18 percent and 7.10 percent respectively in the first quarter, reported Boulder Group, Northbrook, Ill.
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  • April 04, 2016
    Retail And Industrial Cap Rates Reach Historic Lows

    The national net lease market continues to be intensely competitive and entice a record number of investors. Cap rates in the first quarter of 2016 for the single tenant net lease retail and industrial sectors reached a new historic low rate of 6.18% and 7.10% respectively, according to a report just published by the Boulder Group, a net lease firm located in suburban Chicago. But cap rates for the office sector did increase by 20 bps to a cap rate of 7.20%.
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  • March 09, 2016
    The Wal-Mart Effect

    Recent data suggests that the Walmart Neighborhood Market chain is driving down cap rates on net-leased big-box stores. An influx of new units in the fourth quarter of 2015 helped tighten cap rates in the sector by 63 basis points, according to an assessment by The Boulder Group.
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  • March 02, 2016
    Investors’ Demand For Auto Parts Stores Still Growing

    Cap rates for the single tenant net leased auto parts store sector sank to 5.98% in the fourth quarter of 2015, a decrease of 27 bps from the previous year, according to a new study from the Boulder Group, a net lease firm in suburban Chicago.
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  • February 18, 2016
    The Walmart Effect: Compressed Cap Rates on Net-Leased Big Boxes

    Recent data suggests that the Walmart Neighborhood Market chain is driving down cap rates on net-leased big-box stores. An influx of new units in the fourth quarter of 2015 helped tighten cap rates in the sector by 63 basis points, according to an assessment by The Boulder Group, a real estate investment firm specializing in single-tenant net-leased properties.
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  • February 15, 2016
    Will Icahn’s Acquisition of Pep Boys Affect the Net Lease Market?

    Activist investor Carl Icahn has won the bidding war for Pep Boys, beating out Bridgestone Corp. to claim the Philadelphia-based automotive aftermarket chain. The deal is valued at roughly $1 billion—a staggering number when compared to the $800 the Pep Boys founders initially invested in 1921.
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  • February 15, 2016
    New Walmart Market Depress Cap Rates

    The single tenant net lease big box sector saw a significant shift in 2015, according to the latest report from the Boulder Group, a net lease firm based in suburban Chicago. Cap rates compressed from the fourth quarter of 2014 to the fourth quarter of 2015 by 63 bps to 6.08%. That decline was steeper than seen in the entire net lease retail sector, which compressed by only 25 bps during the same period. This represents the first time since 2010 that the big box sector was priced at a premium to the entire retail net lease market.
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  • February 15, 2016
    Big-Box Properties Outperform

    Cap rates for net-leased big-box properties declined in 2015, leading to increased investor demand for the low-risk assets—but is there enough supply to go around?
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  • February 09, 2016
    LA Fitness Sells For Record Cap Rate

    Randy Blankstein and Jimmy Goodman of Northbrook, IL-based The Boulder Group represented Crossroads in the transaction and say the purchaser was a high net worth individual based on the West Coast in a 1031 Exchange.
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