real estate

In today's investment market, that real estate fundamental has moved into first position as it ranks against credit and lease terms. We are seeing once sound companies struggle in this economic cycle and, in some occasions, leaving behind vacant buildings.

Therefore, the questions begin to arise. How strong of a location is a site? What can be done with the land and/or building if the tenant vacates? And what expense may the investor have to incur if a vacancy arises in their once passive net lease investment? All of these factors have become more prevalent in recent times and will most likely stay a large part of investors' conversations for years to come.

Net lease investing has some fundamental points to assessing risk. Credit, which historically seems to be the most prolific indicator, has numerous sources of data and highly sophisticated professionals that look deep into a company's balance sheets in order to provide their opinion of viability. However, now that some of these very sound companies are having hiccups in the market, they may readjust their real estate positions in order to get through the thinner times. The credit rating that these companies have acquired over many years may not change at all, but their business model may and that will ultimately affect their location distribution.