LAS VEGAS–Stan Johnson, the founder of his namesake company (booth S241 at RECon), gives his perspective on how retail real estate's net-lease sector has changed and performed successfully. He talks about how far the firm has reached in its 30 years and the way his company has changed with this evolving sector.
GlobeSt.com: I see that your company has just reached its 30-year anniversary. How has the net lease market changed in the past 30 years?
Stan Johnson: When Stan Johnson Company started in 1985, net lease was not a recognized niche within commercial real estate. There were no firms specializing in this space and little awareness, so I spent a lot of time educating owners and investors about how a net lease works and the benefits of this type of investment. Since then, I have seen the market grow tremendously from a little-known $5-billion market to a very popular $50-billion market. Having focused on net lease exclusively over the past 30 years, I have been fortunate enough to have had a front row seat as the industry has developed. More recently, due to greater awareness of the investment type combined with tepid interest rates over the past several years, the net lease market has become increasingly popular. Investors are always seeking risk-adjusted yield, and net lease is clearly delivering.
GlobeSt.com: How have you remained successful for three decades?
Johnson: I believe our success is a function of our company value proposition – one team, one platform, one focus. one team refers to the fact that we are one team working collaboratively in the net lease industry. When working with our company our clients receive over 350 years of net lease experience. One platform means that all of our shared services support our national net lease brokerage team. We believe we are unique in this respect. From our centralized, shared database to our property marketing and research capabilities, we exclusively support and represent net lease investors. Finally, one focus highlights the fact that we have chosen to try and do one thing and do it better than anyone else – support and advise investors in the net lease space. But like any other successful organization, the real key to our success over these past 30 years has been hiring great people and maintaining the incredible culture we have across our company.
GlobetSt.com: What have been some of the key highlights for your firm in the past 30 years?
Johnson: I launched the firm in 1985 with one analyst and one support person. As time went on I continued to add to the team but kept our focus exclusive to net lease. I was also intentional about hiring the best people and providing excellent client service. In 2008, SJC opened its first regional office in Houston and has since continued its national expansion to Chicago, the West Coast, New York City and Atlanta. These major investments in key markets have provided us access to greater broker talent and proximity to build closer and better relationships with key customers. We are now a team of 65 brokers all focused on the net lease space. We are excited about reaching the 30 year mark and in many ways feel like we are just getting started.
GlobeSt.com: What does the future hold for Stan Johnson Company?
Johnson: We believe the future is very bright for the net lease industry, and we will continue to be an active and relevant participant. It is rewarding to reflect on our growth from a start-up company to where we are today, but what is more rewarding is how we built it. Stan Johnson Company has a unique culture that makes it a special place to build a career and relationships. Our brokers and employees value one another and enjoy working together collaboratively. In an industry sometimes marked by unhealthy competition, we have built and sustained a culture focused on professionalism, integrity and long-lasting relationships. Our competitive spirit is channeled towards achieving superior results for our clients and helping one another succeed.
GlobeSt.com: How will the net lease market continue to evolve?
Johnson: We've seen a lot of changes over the past 30 years and expect to see many more in the future. I love this industry because it is still so new and dynamic! Every day we come across new opportunities to grow the industry such as the expansion of net lease into different product types. New clients are hearing and reading about net lease and are coming into the market which in turn drives a lot of demand. Supply is still low relative to the current demand but the approximately $50 billion industry is still growing at a good pace. While the supply and demand curves will change over time, the underlying value proposition of net lease real estate ownership will continue to drive this industry well into the future. I am very excited about what the future holds for the industry and the Stan Johnson Company family.
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.