It’s no secret that the net lease market is attracting many investors, new and veteran, seeking a safe sector for their portfolios. While there’s no sure thing in the investment realm, net lease does have its pluses, including long-term tenants assuring a steady income stream. But with so many players in the market looking for a great deal, how can savvy investors stay ahead of the pack and land the best net lease transactions? Real Estate Forum spoke with several industry experts to get their take on the net lease market and how to make smart choices when making acquisition decisions.

“Things are getting competitive,” says Jason Fox, managing director and co-head of domestic investments with W. P. Carey in New York City. “We have a low-interest rate environment and despite aggressive pricing, it’s inducing a lot of sales. A lot of users are considering sale-leasebacks, and private-equity firms are considering them for their portfolio companies as a way to access capital to finance growth and expansion.”

On the flip side, Fox adds, the market is also competitive for investors. Property yields have been driven down, and pricing that resembles 2007 is emerging. “There are good opportunities, though,” he says, “in a range of asset classes including retail and restaurants, despite the aggressive bidding out there. The good news compared to 2007 is that you’re still able to generate appropriate risk-adjusted rates of return for this type of investment, given the spreads between property yields and lending rates.”