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Market Update

Where are CAP RATES and numbers of transactions trending?

According to Real Capital Analytics, sales volume, the number of transactions and the total square footage of STNL properties are all down. However, the average price/square foot is up while CAP RATES are trending down by 100 basis points. Here are the numbers

What do the numbers mean?

Our conclusion is that LIMITED SUPPLY of STNL properties has caused prices to increase quarter over quarter, rather dramatically, by 56% to $421. This is consistent with the decrease in CAP RATES by 100 basis points.

How can STNL investors better navigate in this environment?

To ensure that you can identify STNL properties that meet your criteria, here are some tips:

 - Start your property search as soon as possible.                              - If needed, broaden the "net" for an expanded geography or type of  tenant.                                                                                        - Consider NN vs. NNN to increase yield and open up more possibilities of good STNL properties.                                                  - Don't delay in making offers - you are in competition with other active buyers.                                                                                - Use your broker network to find potential "off market" opportunities.

 

 

           

Arby's | Net Lease Investment | 5.5% Cap Rate | 3,034 SF

26026 Northwest Freeway, Cypress, Texas

Bull Realty is pleased to offer this absolute NNN Arby’s single tenant net lease property for sale, located in Cypress, Texas, in the NW section of Houston. The property is fronted by US Hwy 290 with over 96,000 vehicles per day and is an outparcel to a Lowe’s retail center that includes Panera Bread, Firestone and Wells Fargo. The store is operated by Atlanta based Arby’s Restaurant Group and has 13 years remaining on the primary lease term with four 5 year renewal options. Rents increase an average of 5+% every five years. The immediate trade area features other major retailers and restaurants including Home Depot, Wal-Mart and more. The three mile population is over 60K with an average household income of $129K.

-  13+ years remaining on a 20 year term NNN lease with four 5 year options.

-  5.5% cap rate with 5%+ increases every 5 years.

-  NNN corporate lease guaranteed by Atlanta based Arby’s Restaurant Group, Inc.

-  96,000+ VPD fronting the main thoroughfare, Hwy 290.

-  $130,754 average HH income with a projected population growth of 3.24% within a 5 mile radius.

- Located 21 miles NE of the Houston’s CBD, the 4th largest metro area in the nation.

-  Outparcel to Lowe’s that including Panera Bread, Wells Fargo and Firestone.

Randy Reid, TX #333073, Broker of Record

Call 404-876-1640 

On The Radio

Nancy Miller, President of the National Net Lease Investment Group, Bull Realty, Inc. and Scott Lindstrom, Director of Real Estate and Development with Garrard Group joined Michael in Studio One to share some single tenant property investment tips .

You're invited to contact us at 404-876-1640 if we might be of service in any way.