The single-tenant net lease market and the national multi-tenant retail market will continue to enjoy booming growth as a combination of low interest rates and ample availability of capital make the sectors attractive for investors, according to a new analysis.
"Without an increase in rates or a tightening from lenders, this environment will continue to fuel buyer demand," says Lanie Beck, Stan Johnson Company Director of Corporate Research, Marketing & Communications. She notes that investment sales volume for shopping centers is up an "incredible" 211% year-over-year in Q3, and the overall net lease market reported more than $20 billion in activity in the last three months.
Single tenant net lease sales volume hit $20.7 billion, enjoying its sixth strongest quarter on record in Q3, with office clocking in at $7 billion (up 30% from last quarter), industrial hitting $10.7 billion (up 11% from last quarter), and retail posting $3.1 billion (down 31% from last quarter).
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