In shaky retail market, investors eye single-tenant assets

TRD New York /
Mar.March 24, 2010 03:07 PM

Even amid a sluggish retail market, single-tenant net lease deals are on the rise nationwide as investors look to take advantage of their relatively inexpensive price points, industry experts say. Because single-tenant leases tend to be long-term and lower risk, lenders, too, are finding these kinds of acquisitions more attractive to finance. The result, thus far, has been a noticeable year-over-year increase in volume for deals of this type during the first quarter of 2010, plus a decline in cap rates for some of the most desirable properties. Granted, single-tenant assets didn’t suffer as much during the downturn to begin with. Total retail sales fell by 80 percent between mid-2007 and mid-2009, whereas sales of net lease properties declined by about half of that, according to Bernard Haddigan of Marcus & Millichap’s national retail group. Now that the market is beginning to recover, brokers say that investors are especially eyeing metro market properties that house drugstores like CVS and Walgreens, dollar stores and national bank branches.


Related Articles

arrow_forward_ios
Vornado CEO Steve Roth and 595 Madison Avenue (Credit: Google Maps and Getty Images)

Fendi, Berluti take over old Coach flagship at 595 Madison

From left: Authentic Brands Group CEO Jamie Salter, Simon Property Group CEO David Simon, and Forever 21 CEO Do Won Chang (Credit: Getty Images)

Forever 21’s biggest landlord could become its new owner

Ex-Barneys CEO Daniella Vitale (Credit: Getty Images, Google Maps)

Barneys’ lights still on, but workers left in dark

Faith Hope Consolo (Credit: Getty Images, iStock)

The real story behind Faith Hope Consolo’s glamorous life

Bed Bath & Beyond (Credit: Getty Images)

Bed Bath & Beyond is selling its real estate to private equity

Holiday spending was up this year — especially online (Credit: iStock)

Unsettling news for landlords: Online retailers killed it this holiday season

Moinian Group CEO Joseph Moinian, and a street view of the new Best Buy location (535 Fifth Avenue, at left) and the old one (529 Fifth Avenue, at right) 

Best Buy signs lease for new store at 535 Fifth

From top: 29 Nassau Avenue, 8973 Bay Parkway and 94 9th Street (Credit: Google Maps)

The 10 biggest Brooklyn retail leases of 2019

arrow_forward_ios
Loading...