The “Great Recession” of the 2000s generally stirs up negative connotations in the commercial real estate community. Development stood still. Debt was unavailable. Tenants asked for rent reductions or disappeared. Respectable companies went under. Properties and fortunes were lost.

However, owners of certain single-tenant net-leased properties are presented with an opportunity as three post-recession forces combine: low interest rates, constrained supply of properties coming to market and investors looking to put their money to work. The combination of these factors has created demand for STNLs that outpaces supply, resulting in rapid compression of capitalization rates since mid-2010. This situation benefits two distinct groups: return-driven investors who purchased properties during the recession, and long-term cash flow investors who made acquisitions approximately 10 years ago.

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