DENVER-Commercial real estate investors here, nervous about the economy and the state of the volatile high-tech industry, increasingly are seeking more stable and conservative deals where a building is leased to a single tenant, shows a report by Fuller and Co., a local, full-service commercial real estate company. In 1999 and 2000, there were 32 sales of net leased properties valued over $500,000 in the metropolitan area, according to the report. In the first quarter of this year, there already have been 16 such transactions.

The sale of multi-tenant retail properties also increased, but not as much. Even more telling, the sales price per square foot of net leased retail properties jumped 42% from last year, while multi-tenant retail investments over $5 million rose by only 13.5%.

”Increased activity and values for single-tenant net leased properties are primarily due to falling interest rates and the declining stock market,” according to Fuller and Co.

National tenants are especially sought after for these deals. For example, a Walgreen’s lease typically provides yields of 8.25% to 9%, while a Blockbuster leased properties offers yields in excess of 8.75%, the company says. And Radio Shack deals often provide cash-flow yields up to 10%, according to Fuller.

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