Sale-leaseback transaction volume will continue to accelerate as owners rush to lighten balance sheets and hedge against risk from a rising cost of debt before cap rates expand and spreads widen later this year.
The consensus of a panel of experts at GlobeSt's Net Lease Spring conference was that the avalanche of capital and dry powder from sponsors flowing into the market will continue to compress cap rates for another six months.
"The sponsor world had its best year ever and there's definitely more sponsor interest (in sale-leasebacks) out there. Sponsor activity increased in the first quarter of this year," said Vincent Polce, CBRE's national co-lead on corporate capital markets.
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