Overall this year's RealShare was a positive experience with high attendence and a vibrant atmosphere. Here are some takeaways:

  • Attendance strong, attendees optimistic.
  • Nearly unanimous consensus that there is more capital than ever before for net lease investments.
  • Cap rate expectations steady or declining - yields for net leases are still attractive versus alternative investments.
  • Spreads on Net Lease debt expected to compress further.
  • Office/Industrial are seeing most opportunity in secondary and tertiary markets.
  • Price PSF a critical underwriting factor for some while others are focused on underwriting long term credit.
  • Lack of quality NNN retail product constant complaint.
  • Still a pricing gap between core and other locations.
  • There will probably be more interest in non core product this year.
  • Due to their dividend yield constraints, public REIT's more competitive with private buyers and private REIT's in industrial and office sectors.
  • CMBS originations continue to be strong.
  • No concern about significant interest rate increase for the next couple of years.
  • Industrial build to suit deals more prevalent than traditional sale-leaseback transactions.

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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.

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Net Lease