The single-tenant net lease market is likely to end the year strong, with sales activity on track to make 2022 the third strongest year in history. That’s according to a recent analysis from Northmarq, which notes that if current activity… Read More
Archives for 2022
Is Negative Leverage Worthwhile?
It’s been decades since negative leverage was a regular unwelcome guest in commercial real estate. Now it’s a trend again, according to Moody’s Analytics, between growing loan interest rates and cap rates. For those in the industry who are too… Read More
Historical REIT Outperformance
With inflation remaining at 40-year highs, interest rates escalating, and economic growth contracting, the U.S. economy is in a precarious state. Worried about risks to investment performance, these conditions are a source of consternation for some real estate investors. While… Read More
Another Fed Rate Increase and Signals More to Come
Federal Reserve officials made their fourth supersize interest rate increase in a row on Wednesday and signaled that they planned to lift rates higher than they had previously anticipated as inflation proves surprisingly rapid and stubborn. Markets gyrated as investors… Read More
Buying CRE Still Makes Sense
When headwinds begin to mount, some CRE investors go to the sidelines and wait it out. But is that the best strategy? “It makes perfect sense to be cautious, but on the flip side a lot of investors stay active… Read More
Cell Phone Towers Log Solid Returns
While the core commercial real estate sectors including industrial and multifamily have garnered the attention of many investors, smaller asset types, such as, cell phone towers have flown under the radar screen despite logging a solid track record in their… Read More
Net Lease Cap Rates Begin to Rebound
Net lease cap rates began rebounding from all-time lows in the third quarter, with average cap rates ticking up five basis points to 5.44%, according to NNNetAdvisors. Cap rates for the sector are still at their lowest point in 12… Read More
Net Lease Outperforming Broader RE Index
Net lease REITs are often called “bond proxies” because of long lease terms at contractually fixed rent rates that are similar to bonds’ fixed coupons. If net lease REITs are bond proxies, why are they outperforming the broader real estate… Read More
NNN Investors Fill Up on C-stores and Gas Stations
Earlier this month, Wawa Inc. announced that it planned to expand its footprint of convenience stores into southern and coastal Georgia—a move that surprised no one. The Pennsylvania-based company, which owns and operates a chain of more than 965 c-stores… Read More
Taco Bell’s Gravity-Defying Restaurant
On a spring morning in 2020, Lee Engler sat down for breakfast. The sting of the pandemic’s early rush had turned operators into survival gurus. But now, the future was back on the drawing board. Across the table from Engler,… Read More