Ken Hedrick, executive managing director at Newmark, has seen a marked increase in the number of sale-leasebacks transactions this year. And discussions with tenants are increasing about these kinds of transactions.

"I think we'll see an increase in that activity through the remainder of this year," Hedrick says.

Part of the reason is buyer demand from groups like high-net-worth individuals, such as 1031 exchange buyers and institutional investors, who are looking for single-tenant net lease assets. If those investors can't get them through build-to-suit projects or second-generation projects, they're turning to sale-leaseback.

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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.

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