Net lease investments are not only single tenant stand alone properties but also found in urban settings. There are many building in cities around the US that fall in the net lease category. These net lease offerings are usually double net or triple net. Our Urban Net Lease Investment Team focuses on premier investment properties in high density, urban districts throughout the United States. Focusing strictly on assets that are located within metropolitan regions, Avison Young’s urban net lease division was formulated to service the ever-growing net leased, urban investment market.
It has been highly publicized that tenants are seeking to take advantage of the new opportunities afforded to them in recent years by concentrating on locations that are well established and currently produce high pedestrian traffic. Avison Young’s net lease group realizes that the urban sector contains different intricacies and trends which influence real estate values and investment return. Our net lease experts have built a record of success with its urban transactions and has procured some of the most notable transactions within the net lease urban niche market. Our advisors guide clients through the many aspects which affect their prospective properties, ensuring only the best investment decisions are pursued.
Benefits of Urban Investments
There are many emerging factors which make net lease investments in urban areas more appealing. The long term rise in oil prices along with increased traffic and congestion has translated into a rising desire for proximity to public transit, which has made urban living more desirable. To illustrate this fact, suburban households typically spend 25% of their budgets on transportation, compared to 9% for urban households. Subsequently, the number of households desiring to be within one-half mile of urban transit is expected to double, reaching 14.8 million by 2025.
Besides concerns about transportation, other factors are also making urban investment more appealing. The younger generation, so called “echo-boomers” or “Generation Y” is 50% more likely to live in urban areas. It has also been recorded that the top 100 MSAs (Metropolitan Statistical Areas) generate 75% of the U.S. GDP and 66% of its jobs, while only making up 12% of its land mass. Furthermore, the top 10 MSAs are home to 33% of the nation’s “knowledge jobs” and 27% of its research universities. In an economy which is increasingly based on technology and is in-fact referred to as the “knowledge economy”, these numbers point to increased viability and prosperity for urban areas.
Lastly, the retrofit-ability (or reusability) of a particular net lease urban property is typically much greater than standard suburban real estate. Urban properties usually require less identity-driven structures and tenants are comfortable in a specific space mainly because its location. Therefore, if a new tenant is ever needed to fill a specific property, the options of that tenant are much larger than a specifically designed building for the previous occupant.
Meet with one of our skilled net lease experts to learn more about the benefit of a net lease urban investment. Work with them to explore all of the urban investment properties we currently have available and to search through the market. Our team of net lease urban experts are available to answer any questions and help guide you through important investment decisions. Our goal is to ensure you meet your investment criteria, and continue to build wealth for yourself and future generations.
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