As the year draws to a close, net lease professionals are optimistic about the economic new year. Net lease sales have steadily increased this year over last and many expect this trend to continue into next year. According to Real Capital Analytics (RCA) single tenant sales volume has increased 47% in the 12 months through 3rd quarter 2011 and 65% in the 3rd quarter alone. This matches what net lease professionals are witnessing on the street – a pointed increase in net lease sales at year’s end.
It is also interesting to note that according to the Bureau of Economic Analysis (BEA) consumer spending has also been increasing over last year – increasing by 2.1% in Q1, 0.7% in Q2 and 2.3% in Q3. These signs point to a healthier economy and net lease market.
By in large, Net Lease investors have been specifically seeking top credit tenants in primary markets. Pharmacies, Banks, and certain QSR such as McDonald’s (NYSE – MCD) continue to trade at aggressive cap rates. Investors seeking higher returns are turning to non public companies proven to be strong operators. Furthermore, new product is slowly beginning to enter the market - opening up more investment opportunities we all hope to see in 2012.
Read the full report here.
Happy Holidays!!
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
