X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES-Over the past several months one sentiment has remained constant—change is imminent. With the 10 year Treasury climbing over 100 basis points since May, many investors have had to adjust their investment strategy yet again. For the larger institutions that utilize creative debt strategies, interest rate movement has had a noticeable impact. Some deals have gone dead while others have needed additional equity or major restructuring.

For the smaller, single-tenant NNN deals, interest rate movement hasn’t created too much turmoil. This is due in part to many of these assets being purchased all cash through 1031 exchanges or with capital that has been sitting on the sidelines. Demand remains strong for credit tenant investment as buyers seek a stable return. Thus far into 2013, sales of single-tenant properties have increased roughly 10% year-over-year, and the average cap rate remains around 7%.   

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?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

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

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