The annual pilgrimage for brokers, developers, and tenants to Las Vegas took place this past week. The 2015 ICSC RECON event brought together 34,000 attendees and 1,000 exhibitors to discuss industry trends and make deals.
For the single-tenant net lease sector, a number of key points are worth reiterating. First, inventory (especially quality inventory) remains constrained and the number of buyers continues to exceed the number of sellers. As Calkain Managing Partner Patrick Nutt describes it “An excess of capital chasing net lease deals remains constant and is seemingly increasing.” This is made more apparent by the influx of foreign capital, especially in areas like Miami, FL which is seeing massive inflow from Latin and South America.
Second, there are new players in town. A number of new funds and quasi-institutions have appeared and ramped up to purchase net-lease properties in the last year. The sector has performed extremely well over the last five or so years, and it's no surprise more people want in on the action. Finally, if level of discussion and deal making taking place is any indication, then the net lease retail sector is extremely healthy and there is no immediate end in sight to the appetite investors have for it.
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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.
