Private Investors Double Down on Net Lease Assets as Institutional Buyers Step Back
Oct 10, 2016 | by Diana Bell | National Real Estate Investor
Private investors turned more of their attention to single-tenant net lease assets this year, as institutional buyers pulled back from the property type due to the tightening in the capital markets in the early months of 2016.
“Institutions are getting more competition in the single-tenant space from private buyers,” says Mollie Alteri, associate director at Stan Johnson Co., a brokerage firm that specializes in the single-tenant net lease sector. “High net worth investors and family offices are able to compete with institutional investors in this asset class.”
Single-tenant net lease assets priced under $7 million are drawing increased attention from individual investors and family offices due to their ease of management and income production, Alteri says. Private investors still favor retail properties, but industrial net lease assets continue to deliver the strongest returns in the sector and an increasing number of investors are becoming keen on their performance.