Gino Sabatini Gino Sabatini is a managing director at W. P. Carey.

LOS ANGELES—“It is a good time to be a seller,” Gino Sabatini, managing director at W. P. Carey, says about the state of the net lease market. Sabatini says that low cap rates and low interest rates, which are helping to drive demand, are creating a perfect storm for the net lease market. He is speaking next week on the Town Hall Power Panel: The State of the Net Lease Market at Net Lease West in Downtown Los Angeles, and will discuss the market dynamics with panel moderator Jeff Hughes, managing director at Stan Johnson; Harold Hofer, CEO at Rich Uncles; Gordon Whiting, managing director at Angelo, Gordon & Co.

Sabatini expects the market to remain attractive for sellers through 2017. “As long as rates remain low and the alternative for those seeking income is not available, it will remain a seller's market,” he tells GlobeSt.com. “There are all sorts of demographic groups that are looking for a stream of income, and we see a demand for that.”

This vibrant seller's market is fueled by a fervent demand for net lease product due to the low interest rate environment. A lot of people, especially those that are retired, are turning away from the zero-percent interest rates in bank savings accounts and putting their money into hard assets. Net lease is the perfect fit for this demographic because it is low maintenance and has a predictable cash flow.

Continue Reading for Free

Register and gain access to:

  • 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
NOT FOR REPRINT

© 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.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.