The national real estate firm Calkain specializes in net lease real estate, often called single tenant or NNN properties. Given their national base, they are able to collect a lot of great data on recent sales activity on these unique assets (like drug stores, banks, dollar stores, etc.). The most common barometer is of course ‘cap rates’. The main takeaway from their most recent Q1 2016 overview research report shows that the cap rates for these types of properties is pretty stable, averaging about 6.45%. If you have ready some of my previous newsletter stories, you remember that there can be significant variance in cap rates, largely based on the credit worthiness of the underlying tenant and the remaining term on their lease. There are also many pitfalls in these properties that you need to be watchful for. If you want my complete story on NNN properties email me and I will send you some of my previous articles on the subject.
Source: Calkain Research
