Retail, office and industrial sector national asking cap rates fell in the first quarter of 2022 from the previous quarter, according to The Boulder Group. Retail cap rates fell by 13 basis points to 5.75 percent, office cap rates fell by 10 basis points to 6.70 percent and industrial cap rates fell by 17 basis points to 6.60 percent.

The correlation between interest rates and cap rates is not perfect. However, with some market lag, the rising interest rates are likely to cause cap rates to adjust upward, although the prevalence of all-cash buyers in the net lease market is likely to abate the effects of the Fed’s interest rate hikes on cap rates.

Last Updated on June 17, 2022 by Ramin Seddiq