For the fifth consecutive quarter, demand for single-tenant net lease property slowed in the first quarter of 2023, with just $9.68 billion in sales. That total was down 42.2% from the prior quarter and down 62.6% compared to Q1 2022, according to Northmarq's Q1 2023 Market Snapshot report.
Experts had anticipated the slump because of rising interest rates and changing economic conditions. It followed a period of strong sales activity, especially toward the end of 2021.
"Buyers and sellers continue to struggle finding alignment with pricing net lease assets, as higher debt costs translate to reduced buying power for some investors," Northmarq stated.
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.
