The net lease sector is showing resilience and adaptability in the face of economic challenges. Industry insiders are optimistic about the future, noting continued growth and a tenant mix that remains eager to make deals. However, the landscape is shifting, with both retailers and developers implementing new strategies to navigate the evolving market conditions.

One of the most significant trends is the increased focus on cost efficiency and fiscal responsibility. "I think they're looking internally at their projects to ask where are there places that we can cut costs," says Becca Eiland, development partner with Hutton Build, who is speaking at GlobeSt.com’s Net Lease event being held in New York City in April. Retailers are examining their operations closely, seeking ways to streamline processes and reduce expenses without compromising on quality, she says. This internal scrutiny is driven by the looming specter of increased costs for supplies and construction.

Another notable shift is the growing popularity of preferred developer programs. Many tenants who previously engaged in one-off developments with various developers are now gravitating toward these programs, according to Eiland. "The reason being is that just efficiencies of scale and expertise." These programs offer several advantages over working with less experienced developers who may promise terms that are difficult to deliver on, whether in terms of rent or project timelines.