Calkain releases first cap rate report

RESTON, Va. - Through Calkain Site Services, the research and due diligence division of Calkain Companies, Calkain has released its first-ever Net Lease Single-Tenant Retail Report: Fall 2009, which is a net lease market report trending cap rates and market conditions across segments.

Research for the report was compiled from various independent third-party sources, including national real estate brokers, appraisers, loan officers, and valuation service professionals. The report analyzes market data based on 1,025 net lease transactions, and includes perspective on general retail market conditions and financial performance of key net lease tenants.

Andrew Fallon, Calkain Companies’ Research Analyst, tracked sales transactions and prepared the report.

“In this market, smaller dollar-amount transactions have been more prevalent and if the fundamentals are right, aggressive cap rates can be defended by sellers. Overall, cap rates are trending up and are likely to continue on that path into 2010. Investor interest for nondiscretionary retail tenants occupying net lease assets as well as investment grade tenants will remain high in primary markets. It’s the secondary and tertiary markets that are experiencing the more sever cap rate growth,” said Fallon.

The report, which contains current data as of Oct. 1, can be accessed through Calkain’s Web site: www.calkain.com.