3 Triple Net REITs Poised for Average 10% Returns Amid Rising Cap Rates, Escalators, and Lower Valuations

Three factors have revived the triple net REIT sector: rising cap rates, the return of escalators, and cheaper valuations. Cap rates have increased from 4% to 7%-9.5%, and escalators are now 2%-3.5%. This has created a healthy spread over cost of capital and revived acquisition pipelines. Triple net REITs such as Gladstone Commercial and W. P. Carey are well-positioned for double-digit returns.