Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORANGE COUNTY, CA-While most experts in the sector vehemently deny that net lease has become too safe, Sidney Domb, president of UTF, has a different take on the matter. His thoughts are that net lease could indeed be too safe and not provide enough yield for investors—IF their leases are set up incorrectly.

“We started doing this in 1972, so we’ve been in this for 40 years,” Domb says. “When we started, the concept that we had was that we do not have any staff outside fixing anything, so let’s not buy anything unless there’s nothing we have to do but collect a check. We sat down with an attorney—one we’ve been using for 28 years—and made up a bond net lease that said the tenant does everything. Even in the event that there’s a condemnation, the tenant has to make an offer to purchase the property.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.