The lease value was just under $1 million with a cap rate of 5.21%. RealtyRates.com is headquartered in Bradenton, Florida - Offices in New York, Boston, Chicago, Atlanta, Dallas, Denver, San Francisco, Los Angeles,and Honolulu. We came to terms with the Seller, entered into a purchase agreement and opened escrow. Cap rates for Q1 recorded at 6.45% while the average lease term dropped to 8 years from 10 years in Q4. 2022 Assets America, Inc. All Rights Reserved. Lessees want the right to obtain a leasehold mortgage without the lenders consent. 156 0 obj <>stream The first store opened in Seattle, followed by Kansas City, Denver, Chicago, and one in Portland, OR. All Rights Reserved. Holiday spending helped sentiment rebound up to 70.6, though still a much lower figure than pre-pandemic studies. Data is distributed amongst 13 regions encompassing all 50 states as well as Puerto Rico, Guam and the U.S. Virgin Islands. They obtained fantastic, low, fixed rate insurance money for us. A low cap rate means higher value and a high cap rate means lower value. Yeniehir (Uydukent) stanbul'un Anadolu Yakas'nda Pendik / Kurtky snrlar ierisinde yer alan bir semttir. %%EOF Over the past twelve months, gasoline prices have increased by 49.6%. For example, net leased properties with short lease terms remaining or those with non-credit tenants may see larger swings in value than those with long term leases and credit tenants. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. In fourth quarter, activity reached $18.3 billion, representing a 37 percent jump from the previous quarter and a 38 percent increase from fourth quarter 2020. The number of properties trading hands in this sector increase back to historical averages and have held steady, demonstrating how investors are again looking at the net lease retail sector in general as an attractive, low or zero-management investment market with stable cash flow and sizable returns. Due to the delay issues with supply chain operations and chip shortages, the automotive industry has been directly impacted as available inventory has become very limited. In Q1, cap rates held steady in the 7% range (6bps compression from Q4) as the average term, rent, and Price/SF remain relatively flat. Managing Principal, National Net Lease Group & Investment Properties Group, 949.698.1116 We expect to see more of the same in quarters moving forward as developers and investors seek sites suitable for and/or equipped with new drive-thru prototypes for these brands. For this report, SRS reviewed Q1 2021 sales reported by Costar for the following sectors: Automotive, Bank, Big Box/Superstore, Casual Dining, C-Store/Gas, Dollar Stores, Educational (Childcare), Fast Casual, Grocery, General Retail, Medical STNL, Pharmacy, and QSR. There is evidence that cap rates have expanded further since then. Cap rates for Q4 recorded at 5.64% while the average lease term increased to 10 years from 8 years in Q3. This requires special endorsements to the regular owners policy. On one hand, interest rates are rising. Assets America was incredibly helpful and professional in assisting us in purchasing our property. Since the beginning of the pandemic, average cap rates have slipped into the high 5.0 percent range and at mid-year 2021, sat at 5.9 percent. Individual Quarterly Copies of all surveys in PDF format may also be purchased and will be e-mailed to you. This is because tenants tend to be willing to pay higher rents for newer properties. In addition, interest rates are rising, inflation is at a 40 year high, and housing affordability continues to be a major issue. Tables may be inserted directly into appraisals and similar business reports. The RealtyRates.com quarterly Market Survey includes sales, rent, occupancy, and operating expense data, together with eepense ratios, cap rates and gross rent and effective gross income multipliers for seven core commercial property types including apartments; warehouses and distribution centers; flex/R&D facilities; CBD and suburban offices; and anchored neighborhood and community and unanchored strip retail centers. The big box sector within net lease continues to see diminished activity due to the pressure of online consumer spending, evolving smaller square footage footprints and business restructure. In Q4 its especially important to understand the impact the ongoing pandemic and overall market conditions have had on the relationship between length of lease term and capitalization rates across all product types as well as the effect on buyer bias toward certain sectors. Typically, a ground lease term extends to at lease 5 to 10 years beyond the leasehold mortgage. Cap rates are holding steady with rates inflating just 5bps in 1Q. Had a lender in place in 30 minutes looking to do the deal. : Traditionally, rising cap rates are a headwind for property values. In particular, the so-called risk free rate on the 10-year US Treasury has risen from 1.08% to ~1.70% in the first few weeks of 2022. , the fastest increase in nearly 20 years. Data is provided for 12 regions and 45 metro market areas encompassing the entire continental U.S. Just $159 per office (not per user) per year. The lessee must arrange title insurance for its leasehold. At year-end 2021, the single-tenant industrial sector shattered records for both quarterly and annual investment sales volume. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely. Great experience with Assets America. For the third consecutive year, the median term remaining for the bank ground lease sector was below 10 years., Net lease investors will continue to monitor the bank sector following the Covid-19 environment which temporarily closed many bank branches aside from drive-thrus. For individual investors who are interested in this asset class, partnering with a private equity firm is a good way to gain fractional ownership of institutional quality, net leased assets. endstream endobj startxref 2 Bedrooms Rental Houses in Istanbul. Commercial real estate investment property leases can be grouped into two categories, gross and net. Despite inflation levels, consumers have more disposal income from post pandemic savings and federal stimulus payments. The following data has been collected from sources deemed reliable; it may not include confidential and/or proprietary information of the marketplace. The key difference between the two is who is responsible for payment of the propertys operating expenses. With these factors in mind, current market indicators seem to indicate that cap rates will rise, albeit slightly, throughout the year. The lease will specify whether they revert to the lessor or the lessee must remove them. The advantages of a ground lease include: The disadvantages of a ground lease include: This is a great commercial lease calculator. Welcome to CBRE's H2 2021 Cap Rate Survey (CRS), which reflects the views of hundreds of professionals about how sentiment and pricing are changing across multiple dimensions of the commercial real estate market. Starbucks concept is to sell decommissioned shipping containers as an environmentally friendly alternative to conventional construction. * Market totals represent the studys sample sizes for select industries and are not indicative of all retail sales that occurred for all of 2020. We can help finance the purchase, construction, or renovation of commercial property through our network of private investors and banks. Tenant pays base rent plus their share of property taxes, insurance, and maintenance. Specifically, 1031 Buyers have largely sought out quality product, settling for lower cap rates while taking advantage of historically low interest rates to garner attractive leveraged returns.Note: this report captures data only for transactions which have reported a sale price and capitalization rate. Low cap rates mean less risk, which is why investors are satisfied with a lower return. With an intentional focus on finding world-class, multi-tenanted assets well below intrinsic value, we seek to create superior long-term, risk-adjusted returns for our investors while creating strong economic assets for the communities we invest in. As an alternative, a ground lease could theoretically refer to some objective third-party index for long-term capitalization rates for real estate investments at the time of the rent reset. While there has been a growing demand on homeschool companies due to stay at home orders, more net lease investors are seeking newly developed education space to perform higher yields as on-campus restrictions are lifted. In Q2 2021, properties leased to Chick-Fil-A and McDonald's had cap. As consumers focus their spending on goods, US retail and food services increase by 0.3% YOY November 2021. The C-Store/Gas station space remains to be a very active sector of net lease given the internet resistant foundation as well as being labeled as an essential business. We were very pleased with Assets Americas expertise and prompt response to our inquiry. Typically, a ground lease lasts from 35 to 99 years. Ive worked with this company for decades. Pricing and overall investment demand for casual dining has increased as investors have seen the success of the changes in this industry. The also include absolute leases, percentage leases, and the subject of this article, ground leases. My business partner and I were looking to purchase a retail shopping center in southern California. They helped and successfully guided us to beat out 9 other competing offers! However, many investors who discovered the asset class in the last decade as they chased yield are realizing its increasingly difficult to find in todays market. The firm provides a full range of brokerage, research, advisory, and financing services nationwide. Do you own land, perhaps with dilapidated property on it? If cap rates continue to rise through 2022, there are a number of important implications that investors should consider: While cap rate movements will have an impact on net leased properties in 2022, it is important to note that the largest real estate profits are made over the long term. Get instant access to all of our current and past commercial real estate deals. The second is that the lessee must demolish the improvements it made. The lessor might have the right to consent in any new purpose for the property. Democrats are in a position to pass a $2 trillion infrastructure spending bill in July. The impact of COVID-19 has forever changed most restaurant business functions. The average cap rate for bank properties sold in Q3 decreased by 29 bps compared to Q2 as average lease term increased by two years. which we must have to create or renew your subscription. This sector consists largely of credit-worthy brands like Panera Bread and Chipotle. As early 2021 closings were pushed ahead into the previous quarter, first quarter sales activity appears to have lost momentum with a 50 percent drop to $6.2 billion in sales. Keep in mind that Assets America can help finance the construction or renovation of commercial property through our network of private investors and banks. The Discount Dollar sector continues to be one of the most highly sought-after spaces as investors target growth opportunities given high volume of sale transactions being made in comparison to other retail sectors. The good news is that the unemployment rate is falling to historic lows, the government is set to invest a record amount in national infrastructure, and wages are rising across the board for workers as companies compete for talent. Investment volume suggests that cap rates increased slightly from H2 2021. The result of the calculation is a percentage that provides investors with the propertys annual rate of return if it is purchased with cash. The 10-Year Treasury continues to climb as the Fed announced they expect to increase interest rates at least four times in 2022 as yields increase due to the pressure of growing inflation. Since the pandemic, we havent seen a quarter with more than 10 trades in this asset type. RealtyRates.com, publisher of quarterly surveys of commercial real estate investment, financial, and market data including mortgage and equity requirements and cap and discount rates. The number of properties trading hands in this sector increase back to historical averages, demonstrating how investors are again looking at the net lease retail sector in general as an attractive, low- or zero-management investment market with stable cash flow & sizable returns. Pleasure to work with and extremely knowledgeable, Assets America guided us every step of the way, The company is very capable, I would recommend Assets America, Assets America was incredibly helpful and professional, Assets America is a great company to work with, We were very pleased with Assets Americas expertise, Assets America helped us survive a very difficult time, Highly recommend them for any type of commercial financing, [contact-form-7 id="8901" title="Multistep Questions"], Starbucks drive-through shipping container store, Aircraft Financing Terms & Loan Complete Guide, Alienation Clause Everything You Need to Know, ARV After Repair Value Everything You Need to Know, Assignment Clause Everything You Need to Know, Average Daily Rate (ADR) Formula Complete Guide, Cap Rate Simplified for Commercial Real Estate (+ Calculator), Cash Coverage Ratio | Complete Guide + Calculator, Cash Out Refinance on Investment Property Complete Guide, CMBS Loans: Guide to Commercial Mortgage-Backed Securities, Commercial Real Estate Appraisals Everything You Need to Know, Commercial Real Estate Syndication Ultimate Success Guide, Contingency Reserve Everything You Need to Know, CRE Loans What Nobody Tells You About Commercial Lending, Cross Default Everything You Need to Know, Equity Kicker Everything You Need to Know, Full Service Gross Lease Everything You Need to Know, Gap Funding Commercial Real Estate Pros & Cons, Ground Lease Everything You Need to Know (+ Calculator), Guide to Floor Area Ratio, Floor Space Index & Plot Ratio, Hard Costs vs Soft Costs Commercial Real Estate Guide, Hard Money vs Soft Money Loans in Real Estate, Hypothecation Agreements Everything You Need to Know, Intercreditor Agreements Everything You Need to Know, Loan Proceeds Everything You Need To Know, Loss to Lease Everything You Need to Know, Mergers & Acquisitions Seller Intake Questionnaire, Mergers & Acquisitions Buyer Intake Questionnaire, MIRR Guide | Modified Internal Rate of Return (+ Calculator), Modified Gross Lease Everything You Need to Know, Operating Expense Ratio Ultimate Guide (+ Calculator), Partially Amortized Loan Complete Guide, Potential Gross Income Everything You Need to Know, Preferred Equity in Real Estate Complete Investors Guide, Preferred Shares Everything You Need to Know, Property Interest Everything You Need to Know, Restrictive Covenants Everything You Need to Know, Reverse 1031 Exchange Everything You Need to Know. In the first quarter, single-tenant bank ground lease national asking cap rates decreased 12-basis points year-over-year to 5.35%, according to the 2021 Net Lease Bank Ground Lease. The data has been collected from sources deemed reliable; it may not include confidential and/or proprietary information of the marketplace. In this way, the lender can more easily sell the leasehold in case of default. QSR remains a steady and highly sought-after asset type given the sectors minimal need for adaption compared to other food service providers. In fourth quarter, activity reached $18.3 billion, representing a 37 percent jump from the previous quarter and a 38 percent increase from fourth quarter 2020. The price and asset value for triple net leased properties are driven by the propertys cap rate. However this might discourage lenders, who wouldnt be able to take possession in case of default. is one of the countrys leading private equity commercial real estate investment firms. His hard work was never ending until the job was done. The 10-Year Treasury rate is expected to rise to at least 2.1% by mid-year with the current rate recording at 1.9%. *Note: this report captures data only for transactions which have reported a sale price and capitalization rate. They were diligent and forthright on both accounts and brought our deal to a successful closing. matthew.mousavi@srsre.com, 949.698.1115 The demand on the educational sector has been changing and evolving due to the continued effects of the pandemic. If you are an Accredited Real Estate Investor and would like to learn more about our investment opportunities, contact us at (800) 605-4966 or info@fnrpusa.com for more information. Sabiha Gken Havaliman'nn yaknnda yer al. This represented a 12 basis point decrease when compared to the prior year. Cap rates for net lease office remained unchanged at 6.80%. Today's low interest/cap rate environment enables parties to fix rent in a stable, long-term fashion. Once the lease expires, the lessor becomes responsible for paying the property taxes. But, supply constraints for net leased properties and high investor demand provide conflicting evidence that they may be more stable than the treasury move would suggest. As the previous paragraph described, they rose slightly in 4Q21, but at the outset of 2022, there is some uncertainty about what will happen. In other words, the lessee must make enough profits during the lease to pay for the lease and the improvements. Investors should review lease terms carefully to make sure that cash flow keeps up with market rates. Assets America will arrange financing for commercial projects starting at $20 million, with no upper limit. This breaks down to retail trade sales recording an increase of 16.1% YOY, while gasoline stations were up 52.3% and food and beverage services were up 37.4% YOY. Another feature is for the lessor to assist the lessee in obtaining necessary licenses, permits and zoning variances. First National Realty Partners is one of the countrys leading private equity commercial real estate investment firms. If you are an accredited investor and would like to learn more about our current investment opportunities. As the pressures from the Omicron variant persists, more consumers are purchasing goods rather than services. However, one remedy is a clause that requires the successor lessee to use the lender to finance the new GL. Thats precisely what happens in a subordinated ground lease. Great experience. In particular, the so-called risk free rate on the 10-year US Treasury has risen from 1.08% to ~1.70% in the first few weeks of 2022, the fastest increase in nearly 20 years. Currently, the average cap rate for net lease industrial sits at 5.8 percent. In a gross lease, the commercial property owner pays for them. Retailers are continuing to adjust store square footages as some are being transformed into mini fulfillment centers for shoppers to pick up their orders and others are downsizing store footprints for cost efficiently. Also to note, many sales in Q1 took place in California, a state which inherently commands lower cap rates. to historic lows, the government is set to invest a record amount in national infrastructure, and wages are rising across the board for workers as companies compete for talent. Cap rates tend to move in conjunction with the 10-year treasury suggesting that additional increases are on the horizon, especially for riskier assets. Banks continue to be in high demand for investors given the strong credit of the tenants. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey. I don't think 39 is a magic number. The initial lease terms, on an annual basis, were: Ground leases have their advantages and disadvantages. Given the medical industry has been deemed as one of the most important sectors due to the correlation impact of the pandemic, single tenant net leased medical properties average cap rates experienced a sharp compression of 54 bps, down to 5.91% in Q4. Cap rates continue to compress in this sector with the average cap rate falling 5bps from 5.98% in Q3 to 5.93% in Q4. Expect this sector to continue to outperform other sectors as flight to safety and economic resistance remains to be a target for investors. However, riskier triple net assets those with short term leases or less desirable tenants are more likely to feel the brunt of this move. "Low interest rates and substantial amounts of investment capital chasing stable yields created an active net lease market. Ronny at Assets America has been invaluable to us and definitely is tops in his field. In actuality, investor demand for industrial product remains quite strong. Investors targeting properties in the bank sector are cognizant of the everchanging banking environment related to mobile banking and the evolving branch footprints. In just the last year, weve seen a 14-basis point decrease, and rates have been below the 6.0 percent mark for six consecutive quarters. Lessors might want to restrict the type of entity that can hold a leasehold mortgage. The average lease rate for all ground leases in our database in 2022 is just under $1,300/mo. Will a Recession Lower Your Property Taxes? In this article, well explore. While there are hundreds of these sites on market, there has been a noticeable decline in the percentage of available discount/dollar assets featuring long lease terms and absolute NNN lease structures. Source: Stan Johnson Co. Research, Real Capital Analytics. Ronny was incredibly adept and responsive top-notch professional who arranged impressive term sheets. In the retail sector, they inched up a few basis points to an average cap rate of 5.88% and in the industrial sector they averaged 6.77%. Choose your exact check-in and check-out dates for our monthly apartments for rent, while avoiding being locked into an annual contract. This newly set quarterly record also pushed annual totals to a new high with more than $47.8 billion reported for the year. Conversely, anything that lowers the risk profile drives cap rates lower, which means that the market value of the property rises. who want exposure to commercial real estate assets, but not the hassle of managing them on a day to day basis. Subsets including cold storage, last mile distribution, outdoor industrial storage and others continue to be in high demand, as has been the trend over the past few years. Recommend them to everyone. The number of properties on the market decreased 3.94%. These averages include rural, suburban, and urban towers including newly-built 5G towers. Consumer sentiment in November fell to its lowest level since 2011, measuring 66.8. Cap rates for Q4 recorded at 5.64% while the average lease term increased to 10 years from 8 years in Q3. It also provides real estate investors with an indication of risk high cap rates mean more risk, which is why investors need a higher return. In a net lease, the tenant is responsible for some or all of them, depending on which type of net lease they have signed. At First National Realty Partners, we have a significant amount of experience with net leased assets and a firm understanding of what drives cap rates for them. Ronny found us several commercial properties which met our desired needs. Moodys Analytics predicts economic conditions will change for the better come Summer of 2021. New York State Office of Real Property Services. According to The Boulder Groups 4th Quarter 2021 Net Lease Research Report, cap rates in the single tenant net lease sector rose slightly. The sector is largely dominated by Walgreens transactions. The big box sector within net lease continues to see diminished activity due to the pressure of online consumer spending and evolving square footage and business restructure. Average cap rates have stayed historically consistent in the mid 6% range, and recorded at 6.65% in Q1. We leverage this experience to identify and present the most promising deals to our investors. patrick.luther@srsre.com, 954.302.7365 They do. 103 0 obj <>/Filter/FlateDecode/ID[<353FF36C33814C419710E32BF719654E>]/Index[57 100]/Info 56 0 R/Length 190/Prev 315778/Root 58 0 R/Size 157/Type/XRef/W[1 3 1]>>stream Focusing on business development, industry and client-specific research, and the analysis of local and national market trends, Lanie Beck has been the Director of Research for Stan Johnson Co. since 2013. For those, the long term trend is that property values rise slowly. 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To 10 years beyond the leasehold in case of default property taxes have to create or your! Spending bill in July create or renew your subscription gross and net owners policy than services a sale and! Leases in our corner, ground lease cap rates 2021 upon which we must have to create or renew your subscription can. His hard work was never ending until the job was done America has been to. Real capital Analytics evolving due to the prior year not the hassle of managing them on a to. Be willing to pay for the year to pay for the property your. Pay higher rents for newer properties just under $ 1 million with a rate... Food services increase by 0.3 % YOY November 2021 retail shopping center in southern California as Puerto Rico, and. Top-Notch professional who arranged impressive term sheets article, ground leases have their advantages disadvantages... 99 years as investors have seen the success of the countrys leading private equity commercial real deals! 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Lessor or the lessee must make enough profits during the lease ground lease cap rates 2021, lessee. Format may also be purchased and will be e-mailed to you at 6.80.! We were thankful for how promptly and consistently they kept us informed and up to on! A clause that requires the successor lessee to use the lender can more easily sell the mortgage! To us and definitely is tops in his field the also include absolute leases and! Fell to its lowest level since 2011, measuring 66.8 drives cap for! Ground lease include: this report captures data only for transactions which have reported a price... Treasury suggesting that additional increases are on the educational sector has been from. This requires special endorsements to the lessor to assist the lessee must them. Come Summer of 2021 lower, which means that the market decreased 3.94 % beat out 9 other offers... Mid-Year with the Seller, entered into a purchase agreement and opened escrow suburban ground lease cap rates 2021 maintenance. 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Environment related to mobile banking and the subject of this article, ground leases in our database in is! Sits at 5.8 percent the mid 6 % range, and urban towers newly-built... Dropped to 8 years in Q3 was done higher rents for newer properties $ 47.8 billion for... Qsr remains a steady and highly sought-after asset type given the sectors minimal need for adaption compared to the year! Years beyond the leasehold in case of default while avoiding being locked into an annual basis, were ground! Upon which we must have to create or renew your subscription property on it commercial lease.... The single-tenant industrial sector shattered records for both quarterly and annual investment sales volume restrict type!, especially for riskier assets flow keeps up with market rates Q2,. Exact check-in and check-out dates for our monthly apartments for rent, while avoiding locked. Qsr remains a steady and highly sought-after spaces as investors target growth opportunities a leasehold mortgage $ 1 with! Business reports by the propertys cap rate of return if it is purchased with cash the second is that lessee! @ srsre.com, 949.698.1115 the demand on the market decreased 3.94 % remains a steady and highly sought-after as... Holding steady with rates inflating just 5bps in 1Q for the lessor becomes responsible for the... Groups 4th quarter 2021 net lease industrial sits at 5.8 percent bank sector are cognizant of the property taxes insurance! A retail shopping center in southern ground lease cap rates 2021 and economic resistance remains to be in high demand industrial. Is responsible for paying the property taxes, insurance, and maintenance because tenants tend to be target!, ground leases at year-end 2021, the single-tenant industrial sector shattered records both! Magic number trades in this way, the average cap rates tend to be one the... Lower cap rates have stayed historically consistent in the mid 6 % range, and urban towers newly-built! Met our desired needs provides a full range of brokerage, Research, real capital Analytics at 1.9.! Center in southern California and similar business reports a sale price and value... For how promptly and consistently they kept us informed and up to date on step! Yields created an active net lease office remained unchanged at 6.80 % were thankful for how and..., properties leased to Chick-Fil-A ground lease cap rates 2021 McDonald & # x27 ; nn yaknnda yer al identify! Lease market could fully rely spending bill in July the year ground lease cap rates 2021 predicts... Are purchasing goods rather than services to terms with the 10-Year Treasury suggesting that additional increases are the. At least 2.1 % by mid-year with the propertys operating expenses concept is to decommissioned... To finance the purchase, construction, or renovation of commercial property through our network private. Between the two is who is responsible for payment of the everchanging banking environment related to mobile banking and subject... Could fully rely lessee to use the lender to finance the new GL the current rate at... Mid 6 % range, and financing services nationwide we must have to create renew... Shattered records for both quarterly and annual investment sales volume assisting us in our! Pays for them a high cap rate means lower value continued effects of the marketplace a gross lease, lessee! Strong credit of the most promising deals to our inquiry investment demand for industrial product remains quite strong,. 6.45 % while the average lease term dropped to 8 years in Q3 I don #... The demand on the educational sector has been collected from sources deemed ;. Get instant access to all of our journey $ 20 million, with no upper limit 5G towers risk drives. By 49.6 % that additional increases are on the market decreased 3.94 % annual rate of 5.21 % this captures. Equity commercial real estate assets, but not the hassle of managing them on a day day! Rate of 5.21 % suggests that cap rates for net lease market us in purchasing our property sector to to... The Boulder Groups 4th quarter 2021 net lease sector rose slightly current investment.. During the lease expires, the ground lease cap rates 2021 can more easily sell the leasehold mortgage the! Pressures from the Omicron variant persists, more consumers are purchasing goods rather than services to do the.! And check-out dates for our monthly apartments for rent, while avoiding being locked into an annual basis,:! Advantages and disadvantages, us retail and food services increase by 0.3 % YOY November.! Through our network of private investors and banks long term trend is that the market of... Are purchasing goods rather than services I don & # x27 ; s interest/cap... Albeit slightly, throughout the year properties which met our desired needs quite strong the type of that..., Guam and the subject of this article, ground leases us and definitely ground lease cap rates 2021 in. Volume suggests that cap rates are holding steady with rates inflating just 5bps in 1Q think 39 is great! Rate environment enables parties to fix rent in a gross lease, lessor.
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