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In Net Lease, It's a Seller's Market

LOS ANGELES—W. P. Carey's Gino Sabatini gives GlobeSt.com his market take before speaking at the Net Lease West conference next week.

By Kelsi Maree Borland | Updated on October 27, 2016
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.

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