Urban net leases are a proven--and specialized--asset class that hasbeen attractive to investors during the recession, Sobelman says.Retailers also are increasingly moving to these spaces, drawn by thedensity and foot traffic that city streets provide. He points to theCVS in Adams Morgan, near the intersection of 18th Street and Columbia Road, that the company is currently marketing as an example.
Other issues specific to this sector include an increase in mixed-useresidential condominiums in many urban areas as well as zero lot-linestructures. For that reason, "urban net lease investments are goingto be a strong growth category for investors going forward," Sobelmanpredicts. He adds that the urban net lease market has grown just over 120% for Calkain in the last 12 months.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
