Reactions to RealShare 2013
Overall this year's RealShare was a positive experience with high attendence and a vibrant atmosphere. Here are some takeaways:
- Attendance strong, attendees optimistic.
- Nearly unanimous consensus that there is more capital than ever before for net lease investments.
- Cap rate expectations steady or declining - yields for net leases are still attractive versus alternative investments.
- Spreads on Net Lease debt expected to compress further.
- Office/Industrial are seeing most opportunity in secondary and tertiary markets.
- Price PSF a critical underwriting factor for some while others are focused on underwriting long term credit.
- Lack of quality NNN retail product constant complaint.
- Still a pricing gap between core and other locations.
- There will probably be more interest in non core product this year.
- Due to their dividend yield constraints, public REIT's more competitive with private buyers and private REIT's in industrial and office sectors.
- CMBS originations continue to be strong.
- No concern about significant interest rate increase for the next couple of years.
- Industrial build to suit deals more prevalent than traditional sale-leaseback transactions.