Triple Net Lease Deals
Vanishing Buyers for Triple Net Lease Deals
Source: retailtrafficmag.com
"The abundant supply of net lease properties for sale is doing little to spark investor enthusiasm. Net lease real estate sales dropped sharply in 2008 with even lower sales predicted for 2009.
A number of factors have stymied deal flow in a market where buyers are nervous about making a misstep as the economy and financial markets remain in crisis. The continued gap between bid and ask prices and a shakeout in the retail industry are creating a drag on sales activity, while the biggest stumbling block remains the lack of available financing.
In the fourth quarter of 2008, 2,411 net lease properties sold—a 63 percent decrease compared to the fourth quarter in 2007, according to a research report by Boulder Net Lease Funds, an investment firm in Northbrook, Ill. Retail properties represented 53 percent of those transactions with 1,277 individual sales."
The commercial sales market is not unlike residential, where there are gaps in the bid and asking prices. When the restrictions on the credit markets take hold, we would expect to see many more sales then in recent months. Values are considerably lower and there are a great number of buying opportunities.
- Owen Ahearn | Flag this comment for review