Something is shifting in net lease that every investor and owner needs to understand: cap rates are no longer moving in lockstep with the 10-year Treasury. The traditional risk premium framework is breaking down, and in its place, tenant quality, business trajectory, and lease structure are doing the pricing work.

In this episode, Karly Iacono breaks down exactly what's happening and why:

-What's compressing: McDonald's and Chick-fil-A ground leases are trading in the high 3s to low 4s — tighter than ever — even as rates move against them.

-What's widening and why it matters: Dollar General and Dollar Tree cap rates are out due to supply, not business failure. Drugstores are a different story.

-The scarcity factor: Few investment-grade retailers have credible single-tenant expansion pipelines right now.

-The maturity wall: Forced sellers heading into Q3/Q4 create opportunity. That's where quality product trades at rational numbers.

🔗 Connect with Karly: https://www.linkedin.com/in/karlyiacono

#netlease #commercialrealestate #cre #retailrealestate #caprates #capitalmarkets #treasuryyield #creinvesting #nnn

Warning-IRS Circular 230 Disclosure: CBRE and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein is not intended or written to be used, and cannot be used, by the recipient of any Information for the purpose of avoiding U.S. tax-related penalties; and was written to support the promotion or marketing of the transaction or other matters addressed herein. Accordingly, any recipient of this video should seek advice based on your particular circumstances from an independent tax advisor. You also agree that the information herein down not constitute legal or other professional advice and you should obtain legal advice from a qualified attorney licensed in your state. The opinions contained in this video are those of Karly Iacono and may not represent those of CBRE. All content is for educational purposes only. The following content may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and CBRE or Karly Iacono.

Cap Rates are Decoupling from Interest Rates: What's Driving Net Lease Pricing Today

Commercial Real Estate Now

Cap Rates are Decoupling from Interest Rates: What's Driving Net Lease Pricing Today