Newport Beach, Calif. (January 14, 2022) – SRS Real Estate Partners’ National Net Lease Group (NNLG) closed 2021 with $3.04 billion in deal volume comprised of 830 transactions in nearly 40 states, an approximately 60 percent increase over its year-end 2020 deal volume, which was up 26 percent from their volume in 2019.
This year now marks the fifth consecutive year of growth in sales for NNLG and IPG, since its founding in 2016. These transactions are run through the firm’s NNLG and Investment Properties Group (IPG).
“Single-tenant net lease and multi-tenant assets, within our purview of retail, industrial and office, continue to perform well, and with supply limited, pricing has been exceptionally strong. There has been an abundance of capital pursuing well-located, well-performing assets this past year, particularly those that are e-commerce resistant and have outperformed during the pandemic,” said Matthew Mousavi, managing principal, SRS NNLG. “As can be expected, assets classified as essential businesses with more capabilities to adapt to a changing marketplace have been less affected than others, thus representing the largest area of activity for tenants and investors.”
In addition to the strength of the investment sales market, SRS’ NNLG has expanded to support its transaction demand.
Mousavi added, “We have continued our growth with the addition of nationally-recognized brokers and the best support staff in the industry, with more than 60 professionals as part of a team spanning 25 offices across the country. As a company, SRS has outperformed the market as well, with another record-breaking year at the end of 2021.”
According to SRS’ NNLG, there are a number of trends driving activity this year. Overall, with low interest rates ahead of an expected rise in the 10-year treasury combined with the pending tax reforms proposed by the Biden administration the market has seen an increase in trades as buyers seek to take advantage of the currently more favorable financing and tax conditions.
Some of the highest value transactions completed by NNLG in 2021 included:
- Home Depot Distribution Center, Salem, OR for $50,750,000
- Arcadia Crossing Retail Center, Phoenix, AZ for $65,800,000
- Service Auto, Hawaii for $39,250,000
SRS’ NNLG further reported that the discount dollar store sector remains one of the most highly sought-after spaces this year. QSR is another steady and highly sought-after asset type given the sectors’ minimal need for adaption compared to other food service providers. Further QSRs typically offer a lower price point and a higher percentage of absolute NNN lease types for investors compared to other sectors. The industrial sector remains the most resilient real estate product and has been able to quickly adjust to economic conditions due to the growing increase of e-commerce and adaptable last mile demand.
“Looking ahead, we expect robust activity to continue, with an abundance of capital pursuing a limited amount of inventory. Retailers and operators will perform well due to pent up consumer demand and limited supply of new construction,” added Patrick Luther, managing principal, SRS NNLG.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 25 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2019, the group completed more than 400 sales across more than 35 states and has over 50 NNLG professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsnnlg.com.