Investment activity and cap rates in the industrial net lease sector “appear to be holding up well” despite rising costs of capital, and experts predict activity to continue apace through the end of the year as sellers bring more inventory to market.

Analysts at B+E Net Lease noticed that while recent rate hikes by the Federal Reserve have pushed some in the market to press pause while assets reprice,  the interruption “is more evident on the buy side where investors are reevaluating acquisition criteria and financing strategies given the fluctuation in interest rates.”  Demand is still outpacing supply for credit tenants, and valuations remain strong as more owners look to sell in the current environment. B+E predicts that this demand, coupled with above-average e-commerce activity in the holiday shopping season, will keep valuations strong.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Lynn Pollack

 

GlobeSt Net Lease Spring 2023Event

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

Get More Information
 

GlobeSt Net Lease Spring 2023Event

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

Get More Information
 

GlobeSt. ELITE Women of Influence (WOI) 2023Event

GlobeSt. Women of Influence Conference celebrates the women who drive the commercial real estate industry forward.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.