Retail Net Lease's Outlook Rises On Dovish Monetary Policy

Peter Block

Chicago, IL— In contrast to the broader commercial real estate capital markets last year, net lease retail property demand in the US weakened and sales volumes fell sharply. Similarly, according to a recent Colliers International report, while the CRE markets saw stable-to-falling capitalization rates and positive price appreciation, capitalization rates rose modestly in the net lease sector as prices fell.

Some of this was due to the real estate cycle. “Sales volumes fell sharply despite a significant pickup in overall commercial property sales mainly because the market has been hot for so long, it simply had to moderate at sometime,” Peter Block, executive vice president of Colliers tells GlobeSt.com. However tThe primary cause was a rise in interest rates, he continues. Now that rates have dropped again “2019 looks really good,” he says.