TULSA, OK—Ken Hedrick, senior director atStan Johnson Co., recently caught up withGlobeSt.com's Natalie Dolce on net lease retail. According toHedrick, net lease retail is looking very strong after the firstquarter this year.

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“We have seen our retail listings move at a rapid pace intoday's market. We have access to new build-to-suitproperties and retail assets that recently extended their lease,”he says. “There is an abundance of capital trying to acquire netlease retail properties today and we see this trend continuingthroughout 2014.”

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When asked what types of properties have the most investoractivity, he says that “All net lease properties with 10-plus ofterm and credit are seeing great activity. There is a simplysupply/demand curve that is playing out in today's market.”

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According to Hedrick, “We have a large amount of capital that ischasing a shortage of investment grade assets with term. Thisis keeping cap rates at a fairly consistent level and we expect tomaintain that trend in 2014.”

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The economy has impacted some specific tenants like Best Buy,Walgreens etc…that have announced some store closings, he says, but“In most cases, tenants have closed underperforming stores but arecontinuing to grow through new build-to-suits or by going into anexisting building to enter a new market.” Either way, headds, “it appears the economic downturn will produce strongerretail tenants and more strategic growth initiatives over the longterm. Even through this economic shake-out, we still see avery strong investor appetite for the single tenant net leasespace.”

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To hear more of Hedrick's thoughts on where the net leasemarket is headed, check out a recent blog we did on the subject.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.