what is the best cap rate for national tanat leases?

In Buying Property - Asked by mohammad i. - May 1, 2013
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Arthur S.
Broker/Agent
Abita Springs, LA

This may help you. Check out cap rate page
http://ir.bgcpartners.com/files/doc_presentations/2013/1Q2013%20Earnings%20Presentation_FINAL.pdf

May 2, 2013
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Rob B.
Chandler, AZ

Mohammad....
I assume that you are asking for a cap rate when evaluating a purchase or a sale of a property that is made up of predominately national tenant leases.
This is a difficult question to answer specifically because it will depend on the quality of the national tenant, whether it is a single-tenant or a multi-tenant building, the amount of time left on the lease, the increases that are contained in options to extend a lease, the segment for which the property is zoned; the quality and location of the property.
Generally, a capitalization rate of return from a low of 5% to a high of 7% may be your answer. And of course there is quite a difference in what you will pay for a property in this differential of 2%.
Onward and Upward Mohammad.....
Rob Baird
CA DRE Broker's License #544165
AZ DRE Broker's License #BR641305000

Jun 4, 2013
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