Rea: This time next year, we don't actually expect the net lease landscape to look too much different than it does today – sales volumes should continue growing and cap rates should remain low. In light of a strengthening economy that includes GDP and job growth, new development should continue at a fairly robust pace, as tenants expand their presence into untapped or underserved markets.

GlobeSt.com: How would you describe the state of the net lease investment market in secondary and tertiary markets?

Rea: One of the more interesting characteristics of the net lease industry is that high-quality properties are located in all markets, not just the primary locations. In the retail sector, drugstores, quick-serve restaurants and discount retailers including dollar stores, dominate the small-town landscape across the nation. Secondary and tertiary markets are the bread and butter of many strong credit retail tenants, and their expansion plans are helping drive growth and development in these smaller markets. We've also seen a shift recently in the office sector – large, single-tenant office sales are no longer predominantly occurring in the top-tier markets. In fact, only 32 percent of office sales greater than $10 million transacted in primary markets last quarter. This is a fairly significant shift from just a few years ago, as investors venture out of their traditional comfort zones.

GlobeSt.com: What business sectors are the most appealing to net lease investors in today's market? Why?

Rea: The short answer is all of them. Each property type and each business sector can offer very attractive qualities to the right investor. Whether you're looking to purchase a property with a high-credit tenant who is locked into a long-term lease, or you're more interested in a value add opportunity, options are abundant across the net lease sector. During second quarter, we saw industrial sales volume outpace the other property types, which is not uncommon given the large price tags of average transactions. At mid-year though, nearly $10 billion of industrial product had transacted, making it the strongest start to a year in recent times. Retail sales too are quite robust, reporting 38 percent growth in sales volume year-over-year. Traditional properties with tenants like Starbucks, Dollar General and Walgreens continue to be in high demand. At the same time, investors have been taking closer looks at lesser known tenants across all property types, as long as they meet their desired investment criteria.

GlobeSt.com: How would you describe the state of sale leasebacks in today's market? What does the future hold for sale leasebacks?

Rea: Sale leaseback transactions are an attractive way for companies to increase their capital. Whether a company is looking to reinvest capital back into their business, improve their financial health or prepare themselves for a sale or merger, exploring a sale leaseback opportunity is often a consideration. In today's marketplace, demand for high-quality stable assets is strong, and the supply simply falls short. With these market dynamics, companies exploring a sale leaseback have the ability to negotiate advantageous lease terms while maximizing the amount of capital they're able to raise. Going forward, if conditions stay fairly constant, the market will continue to be ripe for sale leasebacks.