Net Lease Sales Strong in Q4

Neil Victor, CCIM and Terri Dean of Sperry Van Ness | Avat Realty in Huntsville, Alabama would like to share this article written by Jonathan Hipp:

As the year draws to a close, net lease professionals are optimistic about the economic new year. Net lease sales have steadily increased this year over last and many expect this trend to continue into next year. According to Real Capital Analytics (RCA) single tenant sales volume has increased 47% in the 12 months through 3rd quarter 2011 and 65% in the 3rd quarter alone. This matches what net lease professionals are witnessing on the street – a pointed increase in net lease sales at year’s end.

It is also interesting to note that according to the Bureau of Economic Analysis (BEA) consumer spending has also been increasing over last year – increasing by 2.1% in Q1, 0.7% in Q2 and 2.3% in Q3. These signs point to a healthier economy and net lease market.

By in large, Net Lease investors have been specifically seeking top credit tenants in primary markets. Pharmacies, Banks, and certain QSR such as McDonald’s (NYSE – MCD) continue to trade at aggressive cap rates. Investors seeking higher returns are turning to non public companies proven to be strong operators. Furthermore, new product is slowly beginning to enter the market - opening up more investment opportunities we all hope to see in 2012.

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