Over the past 36 months, pawn shop-occupied assets have been quietly traded, experiencing a national cap rate compression of 300 bps, yet this sector is still providing 6%-plus returns.
Buying the right net lease investments that have increases throughout the primary and option terms allows you to keep pace with, or even outpace inflation.
Demand drivers are anticipated to change during the second half of this year as post Labor Day corporate travel should increase, and with schools reopening leisure travel will slow down.
We may see lenders dictating a change in the way landlords design their rent increases, and at the least, expect to see more re-trades as underwriters factor in "real return," or how the prevailing inflation rate impacts the asset's ROI.