Single tenant net lease retail: what's the hype?

With multiple buyers for every seller, demand for single-tenant net lease (STNL) retail properties has reached pre-recession levels. Lack of development during the recent recession has also contributed to limited quality triple net leases properties available for purchase in the marketplace. Triple...

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Bibliographic Details
Published inJournal of Property Management Vol. 80; no. 1; p. 26
Main Authors Birdie, Mez, Muhlebach, Richard
Format Journal Article Trade Publication Article
LanguageEnglish
Published Chicago Institute of Real Estate Management 01.01.2015
Subjects
Analysis
Buildings
Cash flow
Commercial buildings
Commercial leases
Commercial real estate
Contracts
Demand
Drug stores
Forecasts and trends
Ground leases
Influence
Investments
Recessions
Retail stores
Retailing
Shopping centers
Signs
Site planning
Supermarkets
Tenants
United States
United States
United States > US
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Summary:With multiple buyers for every seller, demand for single-tenant net lease (STNL) retail properties has reached pre-recession levels. Lack of development during the recent recession has also contributed to limited quality triple net leases properties available for purchase in the marketplace. Triple net leases provide several investment options for developers and property owners. Adding pad buildings in the parking lot of a proposed or existing shopping center will improve its tenant mix, enhance the value of the shopping center and increase its cash flow. Until interest rates rise and development picks up, STNL investment buildings are expected to remain at historic low cap rates. Even when the buildings are occupied by credit tenants, purchasers should always consider who the likely lease candidates would be, should the tenant vacate, STNL buildings are one of the most desirable types of real estate investment properties and, depending on the credit of the tenant and the property's location, can be one of the safest real estate investments.
ISSN:0022-3905
2831-7327