NNN Lease Market News
How does employment growth impact net lease
activity? Or is that question even relevant to the space at all? If you were to
substitute “office” for “net lease” in that sentence, the answers would be
clear and immediate: “significantly” and “definitely yes”, for starters. Then
would follow any number of calculations designed to show the relationship
between this particular macroeconomic metric employment and office leasing
activity.
There is no comparable body of research for the net
lease space, however. Now two companies locally based Calkain Cos., and New
York based Chandan Economics are partnering to produce research in the net
lease space. The companies, headed by Jonathan Hipp and Sam Chandan,
respectively, plan to launch a quarterly publication starting in the next 30 to
60 days. Initially, the publication, called Net Lease Economic Report, will be
available for free to its clients. The goal will be to analyze the impact and
relationship between tenant, developer and investor demand for net lease
assets as well as establish relationships with broader economic trends.
“This subset of commercial real estate has been
growing for the past two years and attracting new investor interest,” Chandan
tells GlobeSt.com. “There is a need for much more rigor behind the research and
understanding of the investment.”
The last two years have indeed attracted new levels
and types of investors, Hipp tells GlobeSt.com, primarily a combination of
institutional and private market investor. “The net lease investment profile
can be very appealing especially when there is a lack of predictability and
enhanced risk around commercial real estate in general.” Net lease’s stability
is one reason why it has been attracting growing levels of investment, Hipp
adds.
“That flight to safety that happened after 2008 and
2009 and has continued to make the net lease an asset class highly sought after
and highly attractive to investors.”
About Calkain: Calkain Companies where triple netlease properties are the focus of our business. Working through the net lease
investment process with our clients is the basis and foundation of our firm. We
are America’s Net Lease Company!
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