Monday, June 20, 2011

Time to Buy (NNN) Net Leased Properties

NNN Lease Market

Now is the Time to Buy (NNN) Net  Leased Properties

As our nation suffers from “deficit disorder” making financial decisions has not been this difficult since the 1980’s. With doom and gloom on the news each night and the word “crisis” in every paragraph, and the capital markets in a state of collapse most investors have frozen their decision making. The availability of high quality assets has rarely been better.

Active lenders are funding selectively and mostly with long term relationships into only the best investments. They look to value of the asset, the ability to pay the loan back and the ability to weather any storm that may come up. We are gripped in a recession a recession and there is no recovery predicted in the near term. Many investors are sitting in strong cash positions and looking for the bottom. It very well be that we would not recognize the bottom even if someone pointed it out. For the long-term investor, they are in the market at all points, up and down. The market is now serving up many great opportunities to buy quality properties at attractive pricing.
Inventory is increasing and there are many products to choose from. All tenant types, credits, lease terms, and types of construction to look at. We look for this trend to continue for the balance of 2010 and most of 2011.
 Despite the economic downturn and the fact that many aspects of the commercial real estate industry still need time to season before true recovery takes place, some niche segments of the market are actually performing extremely well. In fact, some are at the same level they reached at the height of the market.
Financing is the number one issue today. For the owners of smaller properties, options in these difficult times are greater especially since capital is still available for these deals. However, for the larger property owners where potential buyers likely require financing, their choices are much more limited.

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