LOS ANGELES—Helping net lease tenants move upthe chain of credit with properly structured leases is an ideal wayto add value to properties whose cap rates are shrinking, saidspeakers at RealShare Net Lease West here last week.Panelists for the “Asset/Portfolio Management”session said structuring leases correctly iscrucial to good management of net-lease properties.
Moderator Wayne D'Amico, CCIM, 2013president/chairman of CCIM Institute, askedpanelists with values bid up so high, are they trying to increasevalue or stay at the same rate? Brooks G. Gordon,managing director of W. P. Carey, said in the nearterm the biggest place to add value is credit enhancement of thetenant. “They can move up the chain of credit with properlystructured leases. These provisions can be made in the lease upfront.”
Regarding non-commoditized acquisitions,Mark Selman, SVP, asset management, forAmerican Realty Capital Properties, said his firmis “pruning assets” and will help with the cost of capital whenneeded, especially with well-located properties.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
