Sale-Leasebacks Pick up With Slower Economy

NEW YORK CITY-”I would say that we will be better off next year than we are now,” said Bruce McDonald, president and cofounder of Net Lease Capital Advisors, during Real Estate Media’s sixth annual RealShare Net Lease conference. As moderator of the “Town Hall Meeting: State of the Net Lease Market,” McDonald focused on how the credit crunch’s hit pulled reins in on a market that had been moving at a gallop, and asked panelists what their outlook is now and for next year.

“We will see a return to fundamentals with strong tenants and strong locations,” said Andrew Kroll, a director of the investment banking group at SunTrust Equity Funding. “We should see some improvement.”

Robert Micera, SVP and national head of net lease investments at First Industrial Realty Trust, agreed with McDonald and Kroll, noting that “the slower the economy, the more sale-leasebacks pick up, so I think you will see more opportunities going forward.” Micera said that cap rates will creep up and those who have resources will get things done. “I don’t think we are in a recession,” he said. “There is a ton of money sitting on the sidelines and it will be back.”