The stable yields of net-lease real estate continue to drive investor demand, compressing cap rates in the sector to levels not seen in years. That's according to net lease king The Boulder Group, which released its Q3 2016 net lease research report.

Single-tenant net-lease retail remains the most popular segment with investors. Cap rates for net-lease retail properties dropped eight basis points to a record low 6.1%. Office and industrial cap rates plunged further—17 and 12 bps, respectively, to 7.08% for retail and 7.14% for industrial.

Further driving investor demand is a combination of uncertainty in traditional investment asset classes and a lack of new construction properties with long-term leases. The outlook for Q4 remains rosy. Cap rates are expected to remain stable and the market will continue to favor sellers.