Single Tenant Triple Net Retail Investment Property Becoming More Available

Posted September 26, 2013

In 1031, California, Columbus, Commercial, development, Los Angeles, net lease, nnn, Ohio, real estate, Retail

As interest rates climb just a bit and cap rates are at what’s likely to be a cycle low, I’m seeing more new or newer developer owned, single tenant, triple net retail or absolute net, national credit, leased investment properties coming on the market. The availability of construction funding and newly built property coming on the market is also of benefit to buyers and investors.

I think we’ll see more product, and sitting slightly longer on the market until asking caps come back up 50 to 75 basis points. Seller expectations will readjust to the new higher interest rate reality. I don’t think this present an end to the current up cycle at all, but just some readjustment going forward.

I’m definitely seeing more corporate leased 7-Elevens and Circle Ks on the market for my C-store buyers plus an adequate supply of Walgreens and CVSs available as a favorite for 1031 buyers adding up to a little more balanced market.

In fact I think a little more balance will give some safety to 1031 buyers in that they will be able to find a replacement property within the 45 day identification period, which hasn’t always been the case over the last year to 18 months.

Locally, I’m sure not seeing a big increase in Westerville commercial property for sale and certainly not Westerville commercial real estate for lease. I could use some in the historic Uptown District in Westerville.

Newer Columbus commercial real estate for sale is generally on ground leases and bunch of investors have a problem with that. Notwithstanding the depreciation advantage, I understand that concern of owning the building, but not owning the land underneath.

1031 Exchange, Commercial Real Estate, NNN Property, Triple Net Retail

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