In shaky retail market, investors eye single-tenant assets

Miami /
Mar.March 24, 2010 03:18 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
Oak Street Capital's Marc Zahr and Jim Hennessy with 4600 Coconut Creek Parkway (Google Maps)
Oak Street Capital picks up Coconut Creek Walgreens for $7M
Oak Street Capital picks up Coconut Creek Walgreens for $7M
Developer Aria Mehrabi with renderings of the development (Banu Foundation, BRFLT)
Miami Beach board approves pharmacy for North Beach project
Miami Beach board approves pharmacy for North Beach project
Movers & Shakers: CBRE hires two senior vice presidents & more
Movers & Shakers: CBRE hires two senior vice presidents & more
Movers & Shakers: CBRE hires two senior vice presidents & more
Harlan Goldberg, Ricardo Esteves and Jacky Sasson
Movers & Shakers: Bespoke promotes managing director & more
Movers & Shakers: Bespoke promotes managing director & more
From left: Michael Helpern, Richard Hottinger and Norma Jean Callahan
Movers & Shakers: Ackman-Ziff hires Michael Helpern as director & more
Movers & Shakers: Ackman-Ziff hires Michael Helpern as director & more
David Purisch and Duff Rubin
Movers & Shakers: Duff Rubin takes over Coldwell Banker in Florida & more
Movers & Shakers: Duff Rubin takes over Coldwell Banker in Florida & more
Oak Street Jim Hennessey and Marc Zahr with 3100 North Andrews Avenue, Oakland Park
Oak Street Real Estate Capital buys Oakland Park Walgreens for $7M
Oak Street Real Estate Capital buys Oakland Park Walgreens for $7M
Michael Betancourt, Tyler Kuhlman & Dustin Ozga
Movers & Shakers: Colliers hires new brokerage director & more
Movers & Shakers: Colliers hires new brokerage director & more
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...