Palm Beach County, FL – When it comes to retail investment sales, Single-Tenant, Net-Lease Properties are still the place to be. Triple Net Lease Properties “NNN” are still our most desired.
Unlike multi-tenant properties, Single-Tenant, Net Leased Properties are moving well in this recessionary environment due to high demand, clear pricing, consistent underwriting, and little discrepancy between buyer and seller perceptions of the deal.
It seems obvious that Net Lease Properties with good credit tenants, will go quick. There are plenty of benefits of Net Lease Investments in using a 1031 tax exchange. Unlike other investments, commercial real estate is a great tax saver and helps you defer capital gains tax by using the 1031 exchange.
By contrast, sales of multi-tenant retail properties are few and far between. There appears to be gaps between buyer and seller expectations, with many buyers still waiting for REOs to materialize. Plus, debt financing with acceptable terms is still hard to find for most Commercial Real Estate Investors.
Also Owners of better-quality products (Triple Net Lease Properties) are keeping those properties in their portfolio to help with the cash flow of under performers.
Cap rates – while higher – are holding their ground, but only in the single-tenant sector. Cap rates for any multi-tenant deals are being determined on a case-by-case basis relative to occupancy, value of the rent roll and other factors.
Many Buyers were on the sidelines waiting for higher Cap Rates. Although there are still people waiting for rock-bottom opportunities.
Reasonable caution is something we always should have been exercising. Now we have fear and over-caution among buyers, sellers and Commercial Mortgage Lenders.
Feel free to Contact us HERE to sell your existing Net Lease Properties portfolio. We have relationships with 1,000’s of commercial real estate investors interested in purchasing net lease investments. We provide tremendous marketing and exposure for your net lease properties, resulting in the highest pricing and quicker closings.
To obtain quotes on CTL financing or Non-recourse Loans and mezzanine loans or a variety of commercial real estate loan scenarios contact Loanrise.com.