Retail Cap Rates – Q3-2017

In Q3-2017, cap rates for retail properties decreased by 12 basis points to 6.11 percent – the lowest level for this sector since Q3-2016 when the rate was at 6.10 percent. The spread between asking and sold cap rates decreased by 14 basis points during Q3-2017 to 21 basis points with 1031 and private buyer market accounting for 70 percent of single-tenant retail transactions and 85 percent of the transactions priced below a 6-cap. During the same quarter, the 10-year treasury yield dipped to 2.06 before ending the quarter at 2.33, according to Commercial Property Executive.

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