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In a retail environment undergoing drastic changes from the influence of e-commerce, investors are increasingly choosy about which retailers they will partner with to add value to their investment portfolios. Can one retailer make a difference in an environment where so much is at stake?
Recent data suggests that the Walmart Neighborhood Market chain is driving down cap rates on net-leased big-box stores. An influx of new units in the fourth quarter of 2015 helped tighten cap rates in the sector by 63 basis points, according to an assessment by The Boulder Group, a real estate investment firm specializing in single-tenant net-leased properties. Net lease cap rates tightened by 25 basis points between the fourth quarter of 2014 and the fourth quarter of 2015.
It meant that for the first time since 2010 the big-box sector was priced at a premium to the entire retail net lease market, according to...