Rising interest rates and the expectation that cap rates will expand have roiled the net lease market in recent weeks, with buyers rushing to close deals before higher prices are locked in and dealmakers agonizing over whether to close deals that may already be under water.
Nobody expects the flood of capital chasing net lease deals in all asset classes to ebb anytime soon, but dealmakers are feverishly adjusting their strategies to make sure long-term deals still will be profitable.
Speaker after speaker at this week's GlobeSt Net Lease Spring conference offered their best advice for protecting assets from the sudden volatility that is permeating the market. For some, this means deciding whether to close on deals offered in December that already have gone south, profit-wise, in April.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
