Latest news with #RandyBlankstein
Associated Press
4 days ago
- Business
- Associated Press
The Boulder Group announced the release of its 2nd Quarter Net Lease Research Report
Cap Rates in Single Tenant Net Lease Stabilize Following 3 Years of Cap Rate Expansion The Boulder Group announced the release of its 2nd 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 experienced minimal changes in the second quarter of 2025, with overall cap rates increasing just one basis point to 6.79%. Retail cap rates edged up slightly to 6.57% (+1 bp), while office cap rates increased to 7.85% (+5 bps). Industrial cap rates remained unchanged at 7.23% for the second consecutive quarter. 'This modest increase in cap rates illustrates a change from the more pronounced upward trajectory experienced from 2022 to 2024,' says Randy Blankstein, President, The Boulder Group. 'This suggests the market may be stabilizing after three years of consistent cap rate increases.' The plateauing of cap rates can be best attributed to the combination of the Federal Reserve holding rates steady in 2025, investor adjustment to the current interest rate environment and market stabilization following three years of cap rate expansion. 'Transaction activity in the second quarter demonstrated a pronounced flight to credit quality, with premium tenants commanding cap rates lower than the market averages,' adds Jimmy Goodman, Partner, The Boulder Group. High-credit retailers like 7-Eleven, Chase Bank and Wawa commanded sub-6% cap rates, while tenants with ongoing corporate challenges such as Walgreens traded at cap rates in excess of 7%. This bifurcation reflects investors' heightened focus on tenant financial strength amid economic uncertainty. Further proof of this concept is the QSR sector, where corporate QSR brands continued to attract aggressive pricing, with Chick-fil-A and McDonald's maintaining their position as the most aggressively priced assets in net lease at 4.45% and 4.38% cap rates respectively. 'The net lease market continues to show signs of stabilization after three years of cap rate increases, with the second quarter marking a notable change in pricing momentum,' John Feeney, Senior Vice President, The Boulder Group adds. While transaction volume remains below historical peaks, particularly in the 1031 exchange space, the narrowing bid-ask spreads and continued institutional participation suggest improved market liquidity. Investors are closely monitoring Federal Reserve policy signals and broader capital market conditions as they evaluate acquisition opportunities. With cap rate movements moderating and supply-demand dynamics showing greater balance, net lease activity is expected to gain momentum through the remainder of 2025. Pricing and transaction volumes will likely remain well below the peak market conditions experienced in prior years. To view the full report: 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: Press Release Distributed by To view the original version on ABNewswire visit: The Boulder Group announced the release of its 2nd Quarter Net Lease Research Report
Globe and Mail
5 days ago
- Business
- Globe and Mail
The Boulder Group announced the release of its 2nd Quarter Net Lease Research Report
Cap Rates in Single Tenant Net Lease Stabilize Following 3 Years of Cap Rate Expansion The Boulder Group announced the release of its 2nd 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 experienced minimal changes in the second quarter of 2025, with overall cap rates increasing just one basis point to 6.79%. Retail cap rates edged up slightly to 6.57% (+1 bp), while office cap rates increased to 7.85% (+5 bps). Industrial cap rates remained unchanged at 7.23% for the second consecutive quarter. 'This modest increase in cap rates illustrates a change from the more pronounced upward trajectory experienced from 2022 to 2024,' says Randy Blankstein, President, The Boulder Group. 'This suggests the market may be stabilizing after three years of consistent cap rate increases.' The plateauing of cap rates can be best attributed to the combination of the Federal Reserve holding rates steady in 2025, investor adjustment to the current interest rate environment and market stabilization following three years of cap rate expansion. 'Transaction activity in the second quarter demonstrated a pronounced flight to credit quality, with premium tenants commanding cap rates lower than the market averages,' adds Jimmy Goodman, Partner, The Boulder Group. High-credit retailers like 7-Eleven, Chase Bank and Wawa commanded sub-6% cap rates, while tenants with ongoing corporate challenges such as Walgreens traded at cap rates in excess of 7%. This bifurcation reflects investors' heightened focus on tenant financial strength amid economic uncertainty. Further proof of this concept is the QSR sector, where corporate QSR brands continued to attract aggressive pricing, with Chick-fil-A and McDonald's maintaining their position as the most aggressively priced assets in net lease at 4.45% and 4.38% cap rates respectively. 'The net lease market continues to show signs of stabilization after three years of cap rate increases, with the second quarter marking a notable change in pricing momentum,' John Feeney, Senior Vice President, The Boulder Group adds. While transaction volume remains below historical peaks, particularly in the 1031 exchange space, the narrowing bid-ask spreads and continued institutional participation suggest improved market liquidity. Investors are closely monitoring Federal Reserve policy signals and broader capital market conditions as they evaluate acquisition opportunities. With cap rate movements moderating and supply-demand dynamics showing greater balance, net lease activity is expected to gain momentum through the remainder of 2025. Pricing and transaction volumes will likely remain well below the peak market conditions experienced in prior years. To view the full report: 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:
Associated Press
08-04-2025
- Business
- Associated Press
The Boulder Group announced the release of its 1st Quarter Triple Net Lease Research Report
Cap Rates in Single Tenant Net Lease Sector Rise for 12th Straight Quarter in Q1 2025 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: 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: Press Release Distributed by To view the original version on ABNewswire visit: The Boulder Group announced the release of its 1st Quarter Triple Net Lease Research Report
Globe and Mail
08-04-2025
- Business
- Globe and Mail
The Boulder Group announced the release of its 1st Quarter Triple Net Lease Research Report
Cap Rates in Single Tenant Net Lease Sector Rise for 12th Straight Quarter in Q1 2025 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: 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:
