Net Lease Insider

About This Blog

The latest on the activities of the hot net-lease market, from Calkain's Jonathan Hipp. Utilizing his 20+ years of experience in real estate, Hipp manages the overall strategies and growth of Calkain and has successfully completed over $8 billion in investments throughout his career.
  • Net Lease Properties and Supply Growth: The 2nd Quarter in Review

    One metric that Calkain uses to partially measure supply in the market is the change in average lease years remaining at the time of sale on a quarter-by-quarter basis. An increase means the mix of properties being sold is newer, which could be caused by several things, however in our experience it’s primarily due to new construction. …

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  • Location, Location, Location: A Cap Rate Heat Map for Net Lease Properties

    When it comes to net lease properties, buyers and sellers often focus on investment aspects such as tenant creditworthiness, lease years remaining, and rent escalations.  To be sure, these aspects are critical in the net lease arena. However, it is essential to recognize that, at the end of the day, real estate is about location, and a good location can overcome many weaknesses in fundamentals. …

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  • Yes, Cap Rates Are Below 2006 Levels, but…

    Within the single-tenant net lease space, I often get asked whether I believe there is a bubble in commercial real estate due to cap rates being below 2006 levels. The honest answer is I don’t know, and neither do most people. Bubbles are generally discovered only after they pop.

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  • Guarantor’s Importance in Restaurant Net-Lease Properties

    One of the largest sectors in the net-lease space is quick service restaurants (QSRs), consisting of stand-alone locations flagged with tenants such as Wendy’s, KFC/Taco Bell, and Burger King.

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  • The Strategy Behind Walmart Neighborhood Market Stores

    Walmart, the retail behemoth with a market cap of $238 billion, is mixing things up. For decades, the company’s standard policy of building big-box stores aimed at price conscious working-class customers was resoundingly successful. However, it is increasingly clear simply adding large stores won’t be enough to increase, or even maintain, its level of profitability. …

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  • Net Lease Properties and the Portfolio Purchase Discount

    For almost every product out there, a discount is available for buying in bulk. The same is true for real estate, including single-tenant net lease properties.

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  • Recap of ICSC Las Vegas

    The annual pilgrimage for brokers, developers, and tenants to Las Vegas took place this past week. The 2015 ICSC RECON event brought together 34,000 attendees and 1,000 exhibitors to discuss industry trends and make deals.

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  • An Overview of Sale-Leaseback Transactions

    Many business owners reach a point where they need additional capital to fuel growth. Traditional means of doing this include raising equity or taking on more debt. One of the more under utilized options for businesses that own their own real estate however is the sale-leaseback.

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  • Wendy’s Refranchising 640 Stores

    Following a pattern we’re seeing in the wider market, Wendy’s this week announced that they were going to sell as many as 640 stores to their franchisees. This on the heels of McDonald’s announcing they would do the same for 3,500 stores as part of their effort to boost the bottom-line. …

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  • McDonald’s Cap Rates So Far Unaffected by Corporate Turmoil

    McDonald’s (MCD), a long time behemoth in the net lease sector, has found itself under significant pressure lately.

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