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.