California Capital Heads to Phoenix for Net Lease Investment

California capital is heading to Phoenix for net lease investment. As a result, the market has seen significant increases in net lease investment volume. According to a recent report from CBRE, net lease investment in Phoenix totaled $1.7 billion, double the activity from 2017, and has been named a high-growth market for net lease assets. Opportunity and an investor affinity for low-management assets are driving the increased activity.

“We are seeing activity at an all-time high. The buyer demand for net lease asset is unprecedented. Every property is receiving multiple offers and many of the buyers are exchange buyers. If you compare single-tenant net lease assets to an apartment building, as an example, it is much less management intensive,” Joe Compagno, SVP at CBRE, tells GlobeSt.com. “There is a lot of capital coming out of California and into Arizona for net lease real estate. That capital is looking for long-term, stable leases with publicly traded companies that provide a predictable cash flow.”