“There's a lot of chatter out there about the state of retail overall, but on the net lease side, we're still seeing liquidity.” That is according to Nick Kanich, capital markets and investment sales out of Chicago for Cushman & Wakefield.

He recently told GlobeSt.com that “Underperforming assets on the low end of the retail spectrum are being repurposed for industrial and storage uses, and for the most part, not many folks are nervous because nobody's taking on undue risk.”

He adds that “the single-tenant net lease market remains strong.”

When we recently spoke with Stan Johnson Co. director Isaiah Harf on the subject of net lease, he also mentioned that this is a good time to sell. “Because interest rates are still low, and single-tenant net-leased properties are as close to a fixed-income investment as it gets, there's still an arbitrage between cap rates and constants. That leads to many positively leveraged situations. You'll find a wide buyer pool for your asset. We're coming off historic years for annual cap rate compression, and that might be over with, but stabilized cap rates are still at virtual record lows.”

Instant Insights /

Net Lease Side of Retail Still Sees Liquidity

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