Fed Interest Rate Plan Fuels NNN Acquisitions

Matthew Berres

Newmark Knight Frank has hired Matt Berres as executive managing director and co-head of its national net lease platform. Berres position is an expansion of the firm’s net lease group, and Berres expects strong net lease activity this year. The Fed’s decision to stall interest rate increases has helped to fuel activity and boost expectations for the year.

“Early discussion forecasted that we would see the Federal Reserve increase interest rates a few times in 2019,” Berres tells GlobeSt.com. “Historically speaking, cap rates would then soon follow given spreads with net lease investors’ higher cost of capital.  Since the Federal Reserve decided not to increase rates, investors are able to tighten their underwriting and still secure accretive financing for net lease investments.”