Shopping Center Business

MAY 2017

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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Page 208 of 334

NET LEASE 204 • SHOPPING CENTER BUSINESS • May 2017 funds rate by 50 basis points to a target range of 0.75 percent to 1 percent since December, and it could hike twice more this year. The 10-Year Treasury yield, which has climbed to as high as 2.6 percent in the new year, hovered around 2.35 percent in early April, an increase of roughly 60 basis points from a year earlier. Meanwhile, the average retail net lease cap rate of 6.43 percent in the fourth quarter of 2016 represented an increase of 18 basis points over the third quarter, according to Calkain's most recent Cap Rate Report. Much of the increase could be attributed to high cap rates for conve- nience store and big box sales that had lease, location or credit drawbacks, the report noted. Still, many sellers are still asking peak-of-market prices that were the norm a year ago and that don't reflect the direction cap rates are moving today, bro- kers say. "If we're being honest as real estate practitioners, we have to recognize that the Fed has [helped to] subsidize the real estate business for the last seven years," Stan Johnson Co. brokers oversaw the sale of a 15,600-square-foot Natural Grocers asset nestled in the Rocky Mountain town of Frisco, Colorado, last year. Ryan Butler in Tulsa represented the seller while Julianna Clementi-Ryan in Chicago represented the buyer. $350 MILLION IN INVENTORY C A L K A I N . C O M Booth S326R is located in the South Hall on R Street next to McDonald's LAS VEGAS DEALS HAPPEN HERE 2017 ICSC

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