TULSA, OK—“Since the recession, we have experiencedapproximately four years of growth and increasing stability in thenet lease space.” That is according to Brad Pepin,senior director of Stan Johnson Co. We askedPepin, along with two other Stan Johnson executives, about thecurrent state of the net lease retail market, and where is headedin the next few years.
The growth Pepin spoke of has been “driven by increasedsupply—retailers are growing their footprint, thus causing moredevelopment activity—as well as historically low interest rates,and pent-up demand by REITS, pension funds, private equity groups,and individual investors.”
According to Pepin, “Unless there's a significant change in thefinancial markets or material increases to interest rates, weexpect cap rates to stay at similar levels we're experiencingtoday. The net lease market is robust and healthy, which isvery good for our developers and institutional sellers.”
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