Heading into the COVID-19 shutdown in March, net lease transactions were off to a strong start in 2020. Then, COVID hit, the volumes began to drop as the big players pulled back.
"A big piece of the overall net lease space is a lot of the institutional capital," says Matt Berres, executive managing director of Net Lease Capital Markets at Newmark. "The net lease REITs pour billions of dollars into the space on an annual basis. So once the rent collections started to dip within the first 90 days or so they were really preserving liquidity."
As these REITs' stock prices struggled, their focus shifted to working with tenants. "You saw a fair amount of those acquisition officers wearing multiple hats and assisting in the asset management side," Berres says. "They were talking to the tenants and trying to keep them in business."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
