The single-tenant net lease (STNL) market remains strong throughout the Western region, according to Bill Asher, executive vice president of Hanley Investment Group.
This product is doing particularly well in newer, high-quality assets in coastal markets. Buyers remain as interested as ever in pad sites and credit tenants with long-term leases, including Starbucks, Chick-fil-A and 7-Eleven, Asher notes.
All-cash buyers have also maintained their leg up over borrowers, especially in this rising interest rate environment. Asher has seen the most net-lease activity for assets priced at $7 million or less. Though these deals are still trading for a premium, he does believe a settling period may be upon us as rates and the 10-Year Treasury creep up.
Click the video above to hear the rest of Asher’s thoughts on the West’s STNL market.
This video was created as part of the Retail Insight newsletter by Shopping Center Business, a brief newsletter series leading up to the 2018 ICSC Western States conference and including post-conference coverage. The videos in the publication are created in conjunction with our content partners, which sponsor the newsletter. Click here to subscribe and see archived newsletters.