The Boulder Group announced the release of its 1st Quarter Triple Net Lease Research Report
The Boulder Group announced the release of its 1st Quarter Net Lease Research Report today. The report features a comprehensive format with specific net lease sector information. Cap rates in the single tenant net lease sector increased for the 12th consecutive quarter for the overall net lease sector in the first quarter of 2025. Overall cap rates rose to 6.78%, representing a modest two basis point increase from the previous quarter. Single tenant cap rates increased to 6.56% (+4 bps) for retail, 7.80% (+2 bps) for office and 7.23% (unchanged) for industrial.
'The persistent upward trend in net lease cap rates now spans three years,' says Randy Blankstein, President, The Boulder Group. 'This is reflective of sustained high borrowing costs and inflationary pressures.'
Property supply in the single tenant sector increased by more than 5% when compared to the prior quarter. Over the past two years supply has surged nearly 30%, a consequence of lessened transaction velocity and a pricing gap between buyers and sellers.
'Of all the net lease sub-sectors, the drug store sector is experiencing the slowest transaction volume and a glut of supply' adds Jimmy Goodman, Partner, The Boulder Group.
Recent news regarding private equity company Sycamore Partners acquisition of Walgreens further compounded the issue. Uncertainty over Sycamore's long-term strategy has deepened the sub-sector's supply and slowed deal flow. Accordingly, cap rates in the drug store sector increased by 44 basis points quarter over quarter with limited transactions.
'Cap rates in the drug store sector increased by 44 basis points quarter over quarter with limited transactions,' John Feeney, Senior Vice President, The Boulder Group adds.
The net lease market continues to adjust to the higher rate environment experienced in recent years. Transaction volume increased in the fourth quarter and the expectation is that there will be a slight uptick in volume in 2025. Investors will be carefully monitoring the capital markets following the Fed's decision to hold rates steady following their March meeting. If short term rates continue to drop in the near term and uncertainty remains in the overall financial markets, net lease activity is expected to increase but nowhere near pricing or transactions volume in peak times (2020-2021).
To view the full report: https://bouldergroup.com/media/pdf/2025-Q1-Net-Lease-Research-Report.pdf
About The Boulder Group
The Boulder Group is a boutique, Chicago-based investment real estate services firm specializing in transaction and advisory services for single tenant net lease properties. Founded in 1997, the firm has closed over $9 billion of net lease property transactions. The firm provides a full range of brokerage, research, advisory, and financing services nationwide. The level of annual, single-tenant transaction volume consistently ranks the firm in the top 10 companies nationally, according to industry benchmarks determined by CoStar and Real Capital Analytics.
Media Contact
Company Name: The Boulder Group
Contact Person: Randy Blankstein
Email: Send Email
Phone: 8478816388
Address: 3520 Lake Avenue Suite 203
City: Wilmette
State: Illinois
Country: United States
Website: https://www.bouldergroup.com/NNN-Properties-For-Sale.html
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Global News
40 minutes ago
- Global News
Starbucks ordering remote ‘people leaders' back to offices in Seattle, Toronto
Starbucks is requiring some remote workers to return to its headquarters and increasing the number of days that corporate employees are required to work in an office. In a letter to employees posted on Monday, Starbucks Chairman and CEO Brian Niccol said corporate employees would need to be in the office four days a week starting in early October instead of three days a week. The Seattle-based company said that all corporate 'people leaders' must be based in either Seattle or Toronto within 12 months. That is a change from February, when it required vice presidents to relocate to Seattle or Toronto. Starbucks said individual employees working under those leaders would not be asked to relocate. But the company said all hiring for future roles and lateral moves will require employees to be based in Seattle or Toronto. Get weekly money news Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday. Sign up for weekly money newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'We are reestablishing our in-office culture because we do our best work when we're together. We share ideas more effectively, creatively solve hard problems, and move much faster,' Niccol wrote in the letter. Story continues below advertisement Niccol said affected workers who choose not to relocate will be eligible for a one-time voluntary exit program with a cash payment. While many workers grew to enjoy working from home during the pandemic, the call for workers to return to offices full-time has been growing over the past year. Major employers such as Amazon, AT&T and the federal government have required employees to work in company sites five days per week. Competition for fully-remote jobs is fierce. Starbucks spokeswoman Lori Torgerson said she didn't have a count of employees who are currently working as 'people leaders' or are working remotely. Starbucks has 16,000 corporate support employees worldwide, but that includes coffee roasters and warehouse staff. Niccol was not required to relocate to Seattle when he was hired to lead Starbucks last August. Instead, the company said it would help him set up an office near his home in Newport Beach, California, and would give him the use of a corporate jet to commute to Seattle. Since then, Niccol has bought a home in Seattle and is frequently seen at the company's headquarters, Torgerson said.
Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
Starbucks takes aim at remote work, says some employees may need to relocate to headquarters
Starbucks is requiring some remote workers to return to its headquarters and increasing the number of days that corporate employees are required to work in an office. In a letter to employees posted on Monday, Starbucks Chairman and CEO Brian Niccol said corporate employees would need to be in the office four days a week starting in early October instead of three days a week. The Seattle-based company said that all corporate 'people leaders' must be based in either Seattle or Toronto within 12 months. That is a change from February, when it required vice presidents to relocate to Seattle or Toronto. Starbucks said individual employees working under those leaders would not be asked to relocate. But the company said all hiring for future roles and lateral moves will require employees to be based in Seattle or Toronto. 'We are reestablishing our in-office culture because we do our best work when we're together. We share ideas more effectively, creatively solve hard problems, and move much faster,' Niccol wrote in the letter. Niccol said affected workers who choose not to relocate will be eligible for a one-time voluntary exit program with a cash payment. While many workers grew to enjoy working from home during the pandemic, the call for workers to return to offices full-time has been growing over the past year. Major employers such as Amazon, AT&T and the federal government have required employees to work in company sites five days per week. Competition for fully-remote jobs is fierce. Monday Mornings The latest local business news and a lookahead to the coming week. Starbucks spokeswoman Lori Torgerson said she didn't have a count of employees who are currently working as 'people leaders' or are working remotely. Starbucks has 16,000 corporate support employees worldwide, but that includes coffee roasters and warehouse staff. Niccol was not required to relocate to Seattle when he was hired to lead Starbucks last August. Instead, the company said it would help him set up an office near his home in Newport Beach, California, and would give him the use of a corporate jet to commute to Seattle. Since then, Niccol has bought a home in Seattle and is frequently seen at the company's headquarters, Torgerson said. ___ AP Business Writer Cathy Bussewitz contributed from New York.
Cision Canada
3 hours ago
- Cision Canada
HCLTech delivers healthy revenue growth of 3.7% YoY in Q1 FY26
LONDON and NOIDA, India, July 14, 2025 /CNW/ -- HCLTech (NSE: HCLTECH) (BSE: HCLTECH), a leading global technology company, reported financial results for the first quarter ended June 30, 2025. Constant currency (CC) revenue for the quarter was up 3.7% YoY. USD revenue came in at $3.55 billion, up 5.4% YoY. EBIT margin for the quarter was 16.3%. Digital Services revenue grew by 15.2% YoY (CC) and now contributes 41.6% of the overall Services revenue. Engineering and R&D Services grew by 11.8% YoY (CC). HCLSoftware's Annual Recurring Revenue came in at $1.06 billion, up 1.3% (CC). The deal pipeline continued to be robust and diversified, with total new deal wins for the quarter at $1.8 billion. The company announced a dividend of ₹12 per share for the quarter, marking the 90 th consecutive quarter of dividend payouts. For FY26, the company has upped its revenue growth guidance to 3.0%-5.0% and revised its EBIT margin guidance to 17.0%–18.0%. "We had healthy revenue growth of 3.7% YoY, supported by good performance in our Services business with 4.5% YoY growth in constant currency. Our operating margin came at 16.3%, impacted by lower utilization and additional GenAI and GTM investments. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter. As the only service provider positioned as 'Customers' Choice' in all six Gartner Voice of Customer Quadrant evaluations related to IT services*, we are well positioned to grow in the AI era," said C Vijayakumar, CEO & Managing Director, HCLTech. Industry vertical growth was led by Technology and Services at 13.7% YoY (CC), followed by Telecommunications, Media, Publishing and entertainment at 13.0% growth YoY (CC), Retail and CPG at 8.2% YoY (CC) and Financial Services at 6.8% (CC). In terms of geographies, Rest of the World grew the fastest at 15.0% YoY (CC), followed by Europe, which grew by 9.6% YoY (CC). The company added 1,984 freshers during the quarter and the LTM attrition was 12.8%, among the lowest in the industry. "HCLTech Q1 FY26 INR revenue grew an impressive 8.2% YoY. Our cash generation remains robust with OCF/NI at 129% and FCF/NI at 121%, reflecting the underlying strength of our business model. Our commitment to capital efficiency has resulted in LTM ROIC improving for the company by 353 bps YoY to 38.1% and for the Services business by 236 bps YoY to 45.2%," added Shiv Walia, Chief Financial Officer, HCLTech. HCLTech continued to be the trusted partner for global enterprises, driven by its future-ready portfolio. This quarter, the company secured several significant deals, including: A leading US-based hospital chain selected HCLTech to modernize and enhance its IT operations, improve efficiency and achieve better patient outcomes with HCLTech's full-stack portfolio and innovative solutions. A US-based global payments technology major selected HCLTech to accelerate digital transformation and enhance customer experience across its worldwide operations and product offerings, leveraging its technology-driven domain-specific solutions. A US-based consumer goods company has expanded its strategic partnership with HCLTech to implement SAP S/4HANA and other enterprise application services, streamlining operations and enhancing value delivery. A global sports body partnered with HCLTech to develop a GenAI-powered commentary enhancement platform. Built on HCLTech AI Foundry, the platform transforms live match broadcasting by dynamically analyzing live match feeds and delivering real-time, context-aware insights. Some of the key recognitions that HCLTech received in Q1 FY26 include: Among Asia's Most Honored in Extel's 2025 Executive Team rankings. Achieved 17 Top 3 rankings (across Overall, Buy-Side and Sell-Side categories) in the Technology IT Services and Software sector, out of which 9 were #1 rankings - Best CEO – C Vijayakumar ranked #1 in Sell-Side and #2 Overall - Best CFO – Shiv Walia ranked #1 across Buy-Side, Sell-Side and Overall - Best IR Team – HCLTech ranked #1 Buy-Side and Overall HCLTech Chairperson Roshni Nadar Malhotra was honored by the American India Foundation at its annual New York gala for her exceptional leadership and philanthropic impact Won top honors at AWS GenAI Premier League (GPL) Awards 2025: Productivity, Industry Transformation, Innovation Disclaimer: * GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and PEER INSIGHTS is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the "Gartner Content") represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Report), and the opinions expressed in the Gartner Content are subject to change without notice. For further details, please contact: Meredith Bucaro, Americas [email protected] Elka Ghudial, EMEA [email protected] James Galvin, APAC [email protected]
