Net lease cap rate activity in the third quarter of 2025 saw little change among property sectors, The Boulder Group reported. Average retail cap rates were unchanged at 6.57%, while office cap rates increased five basis points to 7.90% and industrial cap rates compressed by three bps to 7.20%.
“This minimal movement in cap rates reinforces the market stabilization observed in the second quarter of 2025,” said Randy Blankstein, president, The Boulder Group. “Following two years of cap rate expansion, participants in the net lease sector appear to be adapting to the current capital markets.”
Stability was further demonstrated in Q3 with the supply of net lease properties, according to The Boulder Group. Overall supply decreased just 0.5% during the quarter, with retail and office inventory declining by 1.4% and 1.1%, respectively. Conversely, industrial properties on the market increased by 6%, suggesting increased seller activity.
“Consistency in cap rates and market supply suggests greater alignment between pricing expectations between buyers and sellers,” said Jimmy Goodman, partner, The Boulder Group.
Pictured: A Lowe’s in Framingham, MA traded at a 6.76% cap rate during Q3, near the average of 6.57% for retail cap rates.
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