The net lease world is much bigger and more complicated than it looks.
Large and Competitive
Marketplace
One thing many folks don’t realize is the net lease marketplace is REALLY BIG. It was estimated that in 2022, there were nearly $78 Billion of these transactions in the US. These are comprised of Office & Industrial ($62B), followed by Retail ($16B). Although the volume of property is high, the competition is fierce. Publicly Traded REITs, Private Equity Companies, Family Offices & Professional Investors are all competing with Individuals and 1031 Exchange Investors to find the best properties and to buy them quickly. Knowing the intricacies of net lease is extremely important to quickly identify the best opportunities in this competitive marketplace.
Seemingly Simple, Thoroughly Complex
From 10,000 feet, net lease investments seem simple. One tenant, one lease, one parcel of land. 5% return for a decade. Easy enough. But there are many more considerations to a net lease investment than just credit, term and cap rate. The tenant’s overall business, single store performance and typical lease structure, coupled with the real estate trade area, demographic makeup and specific site characteristics all impact long-term value in different ways. Understanding the full picture can give you powerful insight to guide your investment decisions.
Retail Categories to Foretell
Auto Parts
Big Box
Cannabis
Technology
Fuel & Convenience
Sporting Goods
Dollar Store
Farm/Rural
Coffee
Restaurants
Pharmacy
Medtail
Office Supply
Home Repair
Pets
Theater
Fast Food/QSR
QSR
Speak with Foretell
Still have questions? Want to learn more?
No matter your level of sophistication, or the size of your portfolio, there is always more to learn. Tell us a bit more about your situation and rest assured we will become a valuable partner in your net lease endeavours.