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Private Buyers Crowd Out Institutions in Net Lease Market

Cap rates in the second quarter of 2014 for the single tenant net leased retail sector reached a new historic low rate of 6.50 percent. Cap rates for the industrial sector compressed minimally by three basis points to 7.97 percent while cap rates in the office sector rose 13 basis points to 7.77 percent during the quarter. The retail sector experienced the third straight quarter of historically low cap rates as a result of increased demand and the continually growing investor

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