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Net lease REITs should continue to reap healthy deal volume over the near term, with historically tight credit spreads and easy access to capital creating more-than-favorable conditions for the sector. 

A new analysis from Baird Equities shows that cap rates declined 9 bps to 5.91% for retail net lease, and indicated that while lower-quality product is coming online, supply of high-quality assets with long-term leases for sale remains tight.  The firm examined bank loan and corporate debt for scores of top tenants and also noted that while a subset of tenants are showing debt yielding higher than B-rated debtconcentrated mostly in theater, fitness, family entertainment and early educationthe cost of debt has improved for some of those, including marquee brand LA Fitness.

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GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

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GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

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GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

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GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

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