MIAMI—In a move to leverage improving conditions in the net leased and retail space, Sperry Van Ness has brought David Wells on board as a senior investment advisor. Wells will also serve as vice president of the Net lease Division for the Miami office.

Wells is charged with expanding Sperry’s presence in the net lease and retail sector throughout the Southeast and nationally. Sperry reports that investment sales have increased 25% over the past quarter and prices have been skyrocketing over the past year by 30% to 40% for premium assets.

“The net lease market in the Southeast is either red hot or ice cold, depending on the lease term and credit of the tenant,” Wells tells GlobeSt.com. “There really is no in between right now." Although deals are trading above where they were in the peak of the market in 2007 for good tenants with at least 10 years of term, he explains, there isn’t a market at all for tenants without strong credit and little lease term.

“Back in the day as a broker we would sell no matter what.  In today’s market I look at every asset that comes across my desk from several perspectives—that of a lender, an individual, a money manager, an institution …” Wells said. “If it isn’t appealing to anyone of these groups you have to ask yourself ‘what happens if I hold? Today’s market requires a much broader perspective.”

Wells has been involved in more than $500 million worth of commercial real estate transactions. Wells has worked in both brokerage and the private equity side. He doesn’t see any change in the challenges for investment real estate. The challenge remains access to capital.

“The heartbeat of real estate investing, people say rates are so low today, but in proportion to the 10-year treasury we’re still looking at a 200-300 basis point spread,” Wells said. “People say cap rates are so low, but we’re still looking at a 200 to 300 basis point spread over the interest rates. The real challenge is who can get financing.”