Single Tenant Retail – Record Sales Numbers

Posted October 13, 2011

In California, Columbus, Commercial, Retail

There’s plenty of money out there, but with a huge aversion to risk. Question is where to put it. You can’t make anything on money market, bond yields are way down, Europe is still in meltdown, stock market is all over the place so what’s left. Single tenant, single parcel, NNN absolute, corporate backed long lease retail. When this kind of products hits the market, it’s gone within a few days. This is primarily what I do so I’m real close to the situation.

The segment started recovery in the third quarter of 2010 and has been gaining strength ever since. CoStar Group shows that sales of single-tenant properties have averaged more than 10,000 transactions per quarter – the highest quarterly totals on record. And for third quarter 2011 comparable sales CoStar is showing that pace is continuing. This year so far, CoStar is aware of 30,000 transactions. Obviously, there could be even more that they aren’t aware of.

It all comes down to: where else are going to put your money? “The low interest rate environment and the lack of safe-haven investment alternatives are driving new sources in build-to-suit and sale-leaseback activity, and investors have incredibly healthy appetites for stable and dependable income streams that single-tenant assets provide,” said Guy Ponticiello, managing director Jones Lang LaSalle’s Corporate Finance & Net Lease division.

For more, here’s Mark Heschmeyer at the link

CoStar News – Single Tenant Property Sales Surge To Record Numbers

Commercial Real Estate, NNN Property

Commercial realtor

Commercial real estate with a focus on out-of-state investment property for my Southern California investors. My clients are Southern California local buyers looking for a return far better than what is available around here and that generally means out-of-state. We have expert property management, legal, and contracting services available.