Dan Lovitz, SVP of acquisitions at VEREIT Inc.
NEW YORK CITY— Net Lease REITs have become an important property sector in which highly predictable rent checks are turned into highly sustainable dividends. External growth fueled by the favorable cost of capital has contributed to the sector's significant performance. 2019 was a year of steady growth for the single-tenant net lease sector, according to Phoenix-based Dan Lovitz, SVP of acquisitions at VEREIT Inc. VEREIT owns one of the largest portfolios of single-tenant commercial properties in the U.S. and continued to strengthen its portfolio through "maintaining a very liquid and flexible balance sheet in 2019," stated Lovitz.
Lovitz will serve as a panelist during the net lease REIT's update panel at the upcoming GlobeSt. 18th annual national net lease conference in New York City. Lovitz' session will explore the primary triggers and trends that investors should watch in 2020 including: cost of capital, operating efficiency and value, and sector consolidation.
So what can we expect looking ahead in this sector? Lovitz tells GlobeSt.com that over time, single-tenant net lease investments have proven to be safe, long-term investments with low volatility. "As long as the underlying real estate fundamentals (location, rent price per square foot, ingress/egress) are strong, investing in single tenant net lease assets provide a hands-off investment that requires minimal day to day management with attractive returns."
He adds that there has been an influx of funds, both public and private, that are purchasing single-tenant properties in the US. "The net lease sector is as competitive as it's ever been and now we have seen foreign capital make a push into the space (predominantly in office and industrial)."
The 18th GlobeSt Net Lease Conference (formerly a RealShare Event) will bring together the industry's most influential and knowledgeable real estate executives from the net lease sector. To hear more from Lovitz and gain insights from other experts in the space and prepare your transactions & investments for continued success, click here to register.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
