Newport Beach, Calif. (March 24, 2020) — SRS Real Estate Partners’ National Net Lease Group has announced solid transaction volume reporting more than $200 million of new deals placed under agreement in the period since the COVID-19 concerns began in the United States. The activity underscores the inherent value of net lease assets, despite market volatility and uncertainty created by the coronavirus pandemic.
“What we are now seeing is similar to what we experienced after the 2008 recession. Net lease proved to be a sought after investment option then and was the first to recover and gain traction. We think that the continued investor interest we’re experiencing is due to some of the same fundamentals that make net lease a strong investment option,” said Matthew Mousavi, managing principal, SRS Real Estate Partners’ National Net Lease Group.
The net lease assets inspiring the most demand are grocery, drug store and convenience, and drive thru fast food, which are all property types that have survived government protocols, proving to be essential businesses. In addition to those listings under LOI and under contract prior to the COVID-19 concerns in the U.S., the team continues to add new listings and complete new transactions. Recent SRS net lease deals have included bank, drug store, and national food, and convenience tenants.
“Flight to quality and stability, especially with stock market volatility, is what makes net lease a continued investor choice. Investors seeking a hard asset and portfolio diversification realize the strength in real estate, especially when you see in the news how important these property types are to consumers today,” added Patrick Nutt, executive vice president, co-market leader, South Florida, SRS Real Estate Partners’ National Net Lease Group. According to Nutt, the team has completed more than 20 deals in Florida this year, underscoring the value of having “boots on the ground.” Nutt joined SRS as market leader in the South Florida office in 2019.
“We do see some sensitivity to certain product types such as fitness centers, which further reflects the impact to some of the government responses to closures during the crisis,” said Mousavi. “People are reacting out of concern in the short term, but the fundamental characteristic of net lease is the long duration of their leases, providing the stability through tumultuous times like these.
As of March 2020, SRS’ National Net Lease Group has completed $188 million of transactions, in 51 deals. SRS continues to not only work with owners and sellers of all types as well as exclusively advise clients working through 1031 exchanges.
“In uncertain times like we are in now, having a seasoned professional on your side is a priceless commodity when navigating the time sensitive 1031 process,” added Nutt.
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’ 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 srsre.com/national-net-lease-group.