Where does net lease stand at the moment? As cap rates compress for single tenant net lease (STNL) deals, investors are expanding their outlooks to find retail opportunities. Multi-tenant centers, particularly three-to-five-tenant strip centers, are the property types currently appealing to Jake Baratz, sales manager & vice president of retail at Taylor Street.
These traditionally second-tier net lease options are now garnering a second glance from STNL buyers and 1031 exchange buyers, especially for assets with strong tenants, long-term leases and good cashflow.
Baratz sees increasing numbers of 1031 buyers arriving from the world of multifamily. “They’re looking to capitalize on a really strong market and strong pricing there and take the opportunity to shift into something less management intensive.”
to learn more about net lease, what deals investors are considering and why.
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