In this weeks Net Lease News, we see tremendous shifts from Net Lease becoming a niche asset class to a main stream. Smaller investors are taking notice and looking to getting their hands on these properties.
With some recent acquisitions of some major REIT players, most notably American Realty Capital purchased CapLease for $2.2 billion and merged with Cole Real Estate for a whopping $11.2 Billion. The net lease market has not only been heating up but looking to emerge into a major asset class. Most talk has been about the multifamily sector but over the past three years, net lease REIT’s have doubled their shares of the traded FTSE US Real Estate Index Series to 6 percent and have been seeing growth of 9 percent to 11 percent in the past two years.
Heading into 2014 we will continue to see this trend as institutional investors increase their acquisitions of net lease. Along with increased buying we will also see an increase in new developments as financing still remains relatively easy to obtain.
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Dwaine Clarke is a published author and founder of Clarke & Tinker Net Leased Property Group, a commercial real estate sales and advisory firm located in Connecticut. Connect with Dwaine on Twitter and Linkedin