What a difference a few months can make. After a year of virtually no activity, vaccines are rolling out with greater frequency, the world is preparing to get back to their offices and the nation generally, the economy and the commercial real estate market specifically are all pivoting toward recovery.
The fact that we have to pivot underscores the cyclical nature of economic issues. Most pundits are pointing to a full recovery next year, but investment goals still have to be met, and individual investors still have needs to fulfill, such as retirement and estate planning. This is especially true on the heels of this particular economic crisis, wherein (according to CNBC), nearly a third of all Americans decreased or stopped their retirement savings.
We see single-tenant net lease investments as the bridge over those troubling questions (with a nod to Paul Simon), as the industry's most consistent and reliable source of steady income. The average lease term for the 11 industry verticals that we track is 11.6 years. That obviously can vary a bit quarter-to-quarter as we see with new listings coming to market. But the overall impact is one of steady returns over the long haul. And all are creditworthy national and regional brands, the Dollar Generals, Walgreens and Taco Bells of the world, names that have proven their longstanding relationships with their customers through major economic swings, this latest one included.
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