Tag: Market Update

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Triple-net leased properties are closely hewing to 10-year Treasury note rise and fall. Will this trend continue?

For the last five years, cap rates have been compressing from an average of 7.19 percent in 2010 to a low of 6.35 percent shortly before the 2016 U.S. presidential election. This has been due primarily to falling interest rates, which reflects the historically low rates on the 10-year Treasury note. In the financial realm, the 10-year Treasury is the benchmark rate on which many assets either directly or indirectly derive their value.

Since triple-net leased properties with investment-grade, credit-rated tenants are much …

Traci BidingerIn Sync

Tenant Profile – Hardee’s

Wilber Hardee opened his first restaurant in Greenville, North Carolina in 1960. Five months after opening, Hardee’s had its first franchisee. This burger chain has grown at an impressive rate, opening its 1,000th restaurant in just 15 years of business.

Traci BidingerTenant Profile – Hardee’s

Tenant Profile – Starbucks

Founded in 1971, Starbucks is a global brand in the quick service retail sector, specializing in the sale of high-margin specialty coffee. The company operates 22,519 stores around the world, often the ubiquitous meeting lounge for socializing amongst friends or office for entrepreneurs.  For the fiscal year ending 2014, Starbucks generated revenue of $16.44 billion and net income of $2.07 billion, with an extremely impressive gross margin of 58.54% and pre-tax operating margin of 18.7%. As of September 2015, its stock had appreciated 48% on a year-over-year basis.

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