“There’s Too Much Capital Chasing Too Few Deals”

New York City skyline

NEW YORK CITY—As quickly as it takes to spend a dollar, forces are shifting in net lease capital markets, driving participants to find new and creative ways to stay in the game. Several of them who will speak Wednesday at RealShare Net Lease here talked EXCLUSIVELY with GlobeSt.com about what they’re seeing.

“The problems of CMBS are starting to filter down,” asserts Ralph Cram, president & managing member, Envoy NNN. “About $200 billion of loans are coming due by the end of 2017 and they either need to be resold or re-financed; banks are stepping into that.”

But there’s only so much banks want to lend, he adds “and that’s led to people not getting as many proceeds on construction loans or just not getting them—that’s the trickle down.”