The NNN Lease Market is Booming

NNN Lease Market News


The NNN Lease Market is Booming In the past 18 months, cap rates for quality net leased properties have tightened more than 100 basis points. New CVS & Walgreen’s properties are selling in the low 7 to the low 6 cap ranges and ground leases with investment grade bank tenants are consistently in the 6’s and starting to break into the 5’s. Investors are attracted to the consistent cash flow stream of net leased properties and with A rated corporate bonds trading in the low 4’s, those looking for better yields are finding net lease properties an attractive alternative. In addition, since the recession started in late 2007, few new net leased assets have come onto the market which has further increased the demand for the existing inventory.
Lenders are bullish and fueling the NNN boom especially the conduits
As lenders have come back into the market, the availability of financing has been a boon for the acquisition of net leased properties. Banks, in regions where they are healthy, are attempting to carve out niches where they know the geographic market and have existing relationships with borrowers.

kwentzel@fantinigorga.com
http://www.fantinigorga.com/