IRVINE, CA—The retail-investment market'stemperature varies according to property type and location, butsingle-tenant retail is one of the hottestsub-sectors, Nicholas Coo, senior managingdirector of Faris Lee Investments, tellsGlobeSt.com. We spoke with Coo about the various property types andhow his firm advises investors and sellers to get the most out ofan asset.

GlobeSt.com: Nick, tell us about the retail propertymarket right now. Is it a buyer's or a seller's market, in youropinion?

Coo: There's a multifaceted answer tothat question. Some segments of the market are at unprecedentedhighs in pricing. Other segments are in equilibrium where benefitsare strong for both parties. The seller's market is at itsstrongest in the single-tenant category, largely within theultra-urban core MSAs and also across the country for NNN assetswith credit tenants. For example, an Apple storeon the iconic Third Street Promenade in Santa Monica, CA sold for a3% cap rate recently. That trade blows away all conventional retailcap-rate thresholds for an asset of its size. With other propertytypes—anchored or unanchored retail outside of what we wouldconsider a top-tier urban location—we are seeing more equilibriumwhere both parties stand to benefit.