It is clear that single tenant properties have become an industry in and of itself as there are a large portion of the ICSC RECON attendees who now focus on this section of retail properties.
Single tenant net lease properties were a dominant topic of discussion leading up to RECon, and the demand for the product type was apparent during conference. Buyers, both private and institution, continue to aggressively seek and pursue single tenant properties even as pricing continues to tighten. Accordingly, developers and owners are capitalizing on the ability to sell into a strong market, while exploring additional built-to-suit and ground lease opportunities
Developers are seeing their pipelines increasing across the board.
There was upbeat enthusiasm from both owners and developers taking advantage of historically low cap rates/higher sale prices and low interest rates to spur future growth. Both developers and retailers are gaining momentum from ICSC 2012 to 2013 with new built to suit deals across the country. Downward pressure on cap rates continues in this low interest rate environment, and there has been a significant uptick in 1031 exchange buyer demand.
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