The annual Las Vegas gathering, the Mecca of retail networkingand dealmaking, proved once again that there are a number ofopinions and business models that may all be highly warranted inthis market. We can use our analogies, metaphors and cliché remarksthrough this market period, but one theme remained constant inVegas: We all have to think differently, we have to act differentlyand we have to react differently. It's a new day in the investmentworld and professionals are slowly starting to respond to thereality of the market.

ICSC reported that it had over 43,000 registrants at this year'sconference. However, the tone of the exhibit halls was drasticallydifferent than in recent years. It was palpably quieter than 2007,and access to the exhibit booths was more readily available.Popping in to say hello to an old friend was a regular occurrencethis year, whereas appointments were mandatory the last couple ofyears. Conversations lasted longer, more substantive informationwas conveyed and—surprise, surprise—people actually got some workdone.

So what does this all do for the net lease market? It says thatreality is setting in and forthcoming transactions will change.While some of the net lease transactions that occurred over thelast several years are almost unheard of these days, many deals arestill being completed, albeit at altered terms. The six-capWalgreens is almost a distant memory, as is the five-cap groundlease. The 1031 exchange is no longer the driving force of the netlease industry and the all-cash, passive investor is now the mostsought-after commodity.

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