ORLANDO—How low can we go? It sounds like a limbo party but nobody likes to be in limbo—and some are starting to ask questions about the capital markets.
Teal Henderson, a director at Calkain Companies, is hearing questions arise and sees challenges. But she's still optimistic about the net leased sector.
Henderson is a speaker at the upcoming RealShare Central Florida event Sept. 7 in Orlando. She will take a seat on the State of Central Florida's Capital Markets Panel.
GlobeSt.com: What warning signs or troubling issues are you seeing in Florida's capital markets?
Henderson: The concern is still really finding enough product for the demand. There are more developers looking for new opportunities both in retrofitting and redevelopment but also in finding new dirt to start digging.
GlobeSt.com: What other issues are you concerned could emerge?
Henderson: There is always the concern of where the cap rates are going. How low can they go before we see a souring of the market and investors begin acting on fears of a possible repeat cycle of 2008? The investor community will continue to pay close attention to the debt market to try and determine the tipping point.
GlobeSt.com: What are the greatest challenges in the current market?
Henderson: Currently it is still basic supply and demand of quality net leased assets. Another challenge comes with changes in the debt market. Debt availability impact the buyer demographics and the competition for the assets. Most buyers are currently opting for debt due to ease of availability and low cost allowing them to maximize exchange size or purchase more assets by using debt.
GlobeSt.com: Any other thoughts?
Henderson: The net lease market continues to be a stable investment vehicle for investors. The current capital market is a great stimulator to the steady flow of net leased transactions and a positive sign for developers to continue to seek out new opportunities to build and sell.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
ORLANDO—How low can we go? It sounds like a limbo party but nobody likes to be in limbo—and some are starting to ask questions about the capital markets.
Teal Henderson, a director at Calkain Companies, is hearing questions arise and sees challenges. But she's still optimistic about the net leased sector.
Henderson is a speaker at the upcoming RealShare Central Florida event Sept. 7 in Orlando. She will take a seat on the State of Central Florida's Capital Markets Panel.
GlobeSt.com: What warning signs or troubling issues are you seeing in Florida's capital markets?
Henderson: The concern is still really finding enough product for the demand. There are more developers looking for new opportunities both in retrofitting and redevelopment but also in finding new dirt to start digging.
GlobeSt.com: What other issues are you concerned could emerge?
Henderson: There is always the concern of where the cap rates are going. How low can they go before we see a souring of the market and investors begin acting on fears of a possible repeat cycle of 2008? The investor community will continue to pay close attention to the debt market to try and determine the tipping point.
GlobeSt.com: What are the greatest challenges in the current market?
Henderson: Currently it is still basic supply and demand of quality net leased assets. Another challenge comes with changes in the debt market. Debt availability impact the buyer demographics and the competition for the assets. Most buyers are currently opting for debt due to ease of availability and low cost allowing them to maximize exchange size or purchase more assets by using debt.
GlobeSt.com: Any other thoughts?
Henderson: The net lease market continues to be a stable investment vehicle for investors. The current capital market is a great stimulator to the steady flow of net leased transactions and a positive sign for developers to continue to seek out new opportunities to build and sell.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
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