The single-tenant transaction count for the first half of 2023 was the fifth-highest tally since 2000, according to Marcus & Millichap’s 2H 2023 U.S. Single-Tenant Net-Leased Retail National Report.
Furthermore, single-tenant trades accounted for nearly one-fourth of all primary commercial real estate deal flow during the 12-month period ending in June and its share of total trading exceeded its prior yearlong proportion, when 21 percent of all sales involved a single-tenant asset.
Monthly core retail sales, which exclude gas and auto purchases, have exceeded $500 billion seven times since January, after having never exceeded $500 billion.
Net lease investors are actively seeking deals that are trading based on lower rents and lower development costs because of new projects’ long lead times and higher costs, says Andrew Fallon, SRS Real Estate Partners, National Net Lease Group, Executive Managing Director/Market Leader, Washington DC.
“In high barrier-to-entry markets, like Northern Virginia, we are seeing the most demand based on scarcity of new deals, and the favorable outlook for the region in terms of stability, consumer spending, and retailer success,” he tells GlobeSt.com.
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