NNN lease opportunities offered today are too low

[Jerald U.]

I have been considering various NNN lease opportunities. In my area the cap rates are 3 to 4.5%. This seems very low to me. In the future interest rates probably will exceed this cap rate. There are the advantages of tax write-offs and property price appreciation. On the other hand, there is some real estate risk being assumed by the owner: building deterioration, earthquake retrofit, key tenant bankruptcy or relocating, etc. Is anyone investing in such a low cap rate environment today?? If so, what is your motivation?