Notable Mentions

This Net Lease Segment Is Recession-Resistant

cpexecutive.com

This type of single-tenant property may be just the answer for investors who are nervous about recent economic events, says Avison Young’s Jonathan Hipp.

Along with (literally) the rest of the world, we’re watching the daily news of the spread of the coronavirus, now upgraded by the World Health Organization to pandemic status. We hold to what we have said all along in terms of its impact on investment, namely, play the long game and know that this too shall pass. As devastating as the news is–and it is–the old rules of investment still apply. Just as panic won’t help …

Leigh ClineThis Net Lease Segment Is Recession-Resistant

Net Lease Opportunities in Difficult Times

GlobeSt.com

A creditworthy tenant with a certain degree of correction-resistance in its marketing strategy is a fairly sure bet to hedge against the vagaries of the greater market.

The coronavirus news gets scarier every day as the spread of the disease worsens. Investors have taken notice, and the stock market reflects it. But those of us who have been in the business long enough, know that the long-game is the thing.

Amanda WillisNet Lease Opportunities in Difficult Times

The Real Reason So Many Stores Are Closing

globest.com

If people are shopping differently today, and they are, it is not to the exclusion of brick-and-mortar venues, but rather to those brands that have not been able to think in an omnichannel strategy of bricks-and-clicks working together.

Excuse me while I step outside of my normal role in this space of focusing solely on the net lease market. Because there is a dynamic impacting all of retail—the general market as well as net leased retail—that needs to be addressed, namely, the myth of a retail apocalypse.…

Amanda WillisThe Real Reason So Many Stores Are Closing

Interest Rate Cuts Bolster Net-Lease Investment

RE Business Online

The Federal Reserve’s decision to reverse its monetary policy and lower short-term interest rates has fueled demand for single-tenant, net-leased retail assets with regard to both deal volume and the entrance of new buyers into the space, although cap rate movement has been slow to reflect this growth. 

The nation’s central bank has implemented three 25-basis-point cuts this year, creating a lower cost of capital for prospective buyers in the net-lease market and generating positive impacts on the cash flows of owners marketing their properties for sale. Consequently, both sides are showing a willingness to both bid on and

Amanda WillisInterest Rate Cuts Bolster Net-Lease Investment

The Healthy Net Lease Asset Class

GlobeSt.com

Thanks to increased demand for healthcare services, the medical net lease sector will continue to offer steady cash flow and safe returns for investors.

The medical sector is one of the quieter, more under the radar property types within the net lease world. Though not as abundant as dollar stores or ubiquitous as fast food; medical net lease properties offer investors steady cash flows, low-to-no management burden, and cap rates which beat out other similarly sized deals. Furthermore, an aging demographic shift will help ensure this asset type remains a viable investment well into the future.

Dissecting the Sector

For …

Amanda WillisThe Healthy Net Lease Asset Class

Net Lease Investors Remain Confident in Q3

GlobeSt.com

Despite the specter of trade wars and a global economic slowdown, net lease investors bought in Q3 2019, showing confidence in the sector and economy. However, the US economy bears watching, especially in light of another Federal Reserve interest rate cut.

Three months later, the story is different. During the third quarter, cap rates ramped up by 16 bps, from 6.41% to 6.57%.

An increase in cap rates can mean more buyers are in the market, eager to take advantage of lower price points. This is supported by our transactional data, which posted 544 completed deals. Even in the face …

Amanda WillisNet Lease Investors Remain Confident in Q3

The War Between Amazon and the Dollar Store Sector

GlobeSt.com

How does the online giant expect to break into one of the busiest sectors for buyers?

As we continue to grow into a digital age, we see more and more retailers developing their online presence to have a wider reach with consumers around the world. This is how Amazon become the shopping behemoth we know today. As a result, different brick-and-mortar stores struggle to create a business plan that addresses Amazon’s competition and eventually fall to the wayside. One sector, however, has not seemed to be taken aback from this competition—the Dollar Store sector.…

Amanda WillisThe War Between Amazon and the Dollar Store Sector

Auto Versus Bank: Two Net Lease Types, Different Sides of the Coin

GlobeSt.com

Net-lease properties encompass a single investment category. However, differences between banking centers and automotive repair centers/auto supply retailers mean investors must understand industries and trends before putting their money into properties.…

Leigh ClineAuto Versus Bank: Two Net Lease Types, Different Sides of the Coin