Cap rates for the single-tenant net-lease retail sector hit a historic low rate of 6.18 percent in the first quarter, according to Boulder Group’s quarterly survey. The spread between asking and closed cap rates on such properties was 24 basis points, up by 1 point from the previous quarter, the firm reports. The pipeline of single-tenant properties under construction continues to tighten, keeping cap rates low. Overall supply of the net-lease sector declined by about 3 percent in the first quarter, compared with the quarter before. There were 3,209 single-tenant net-lease retail properties on the market, off by 1 percent from the previous quarter. “New-construction properties are in the highest demand amongst 1031 and private buyers,” said John Feeney, a Boulder Group vice president, “as they typically have the longest lease term.” Private investors will keep the sector humming even as institutional players seek more-stable returns due to the volatility of the 10-year Treasury, he added. “1031 and private investors are more likely to accept lower returns due to timing and tax consequences.”