BALTIMORE-Marcus & Millichap Real Estate InvestmentServices has sold nine single-tenant net-lease propertiesfor a total of $44.6 million. The transaction wasnot a portfolio sale, Marcus & Millichap broker MarkTaylor, in the firm’s Philadelphia office, tellsGlobeSt.com. Still, though, the nine separate sales speak volumesabout the trajectory of the single-tenant net-lease market andinvestors’ growing love affair with it.
“Single-tenant net lease has become the darling of theinvestment community because of its stability of returns, lowinterest rates and demand for the assets,” Taylor says. Demand hasbeen fueled by 1031 and 1033 buyers as well as investors leavingnon-real estate fixed-rate instruments such as corporate bonds.
Then there are the properties’ locations. “When an asset's in amajor market such as Maryland and Delaware you'll get strongerinterest because of the demographics involved,” he says, tickingoff such factors as population trends and the Mid-Atlantic’s stableregional economy.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
