As we wrap up 2013 with the joyful celebrations and shining lights of the holiday season, it's only appropriate we give thanks for positive trends from 2013 and look forward to 2014.
1. New development is starting to break ground. Finally this year solid news has been reported that new developments are actually underway and in the dirt. Ever since the recession there has been a lack of new construction and it looks like we are finally building again.
2. Financing continues to be easier to find (despite rising interest rates). Financing today continues to be much easier to obtain than in the dark days of the recession a few years ago. Even the specter of rising interest rates hasn't pushed this trend back.
3. Net lease investors can look forward to rising cap rates - for potential net lease sellers, this may be the time to put your product back on the market. Rising interest rates mean cap rate compression is finally over. Already in the latter half of this year we've seen cap rates increase. This will only continue in 2014 as interest rates continue to slide upward.
4. Net lease assets continue to be one of the safest, most dependable investments. Sometimes its good to give thanks to the basics and one of the fundamental selling points of net leases - their security - continues to be the gift that keeps on giving.
5. Activity in the net lease market continues to be very high. Even with a lack of properties on the market - the hunt for those properties is fervent. Investors have great appetite and net leases provide a delicious investment opportunity.
Happy Holidays!
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
