Since the beginning of the year, more institutional and private equity players have been seeking net-lease deals with shorter terms, according to a State of the Industry panel at GlobeSt's Net Lease Spring conference.
But panelists cautioned that short-term deals are best suited to high-demand assets in prime locations, including industrial and multifamily properties, where substantial rent increases and rising inflation can be baked into the deal to allow owners to recoup the cost of the building.
Traditional long-term leases that run for 20 years are easier to finance and don't run the risk that the lease will run out before owners recoup their investments, they said.
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