NNN Pro Group, which separated from Marcus & Millichap earlier this year, entered 2023 on the heels of a banner year that netted $5.6B in net lease investment sales, including $1.5B in car wash sales and $1B in quick-service and casual dining restaurants.

The newly independent firm also amassed $3B in transactions involving a spectrum of assets including automotive repair outlets, pharmacies, convenience stores and a kaleidoscopic array of specialty use product types—everything from veterinary clinics and bowling alleys to amusement parks and funeral homes.

The dramatic slowdown in STNL transactions in the first quarter as the rising cost of debt pushed cap rates up towards 8%—STNL investment sales plunged 42% in Q1 compared to Q4 2022—is being caused by a "disconnect" between sellers and buyers on deal pricing, NNN Pro Group CEO Glen Kunofsky told GlobeSt.