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Matthew Berres Matthew Berres is an SVP in JLL’s Los Angeles office.

LOS ANGELES—The net lease market may be normalizing after a prolonged period of substantial growth. According to new research from JLL, net lease sales volumes normalized in the third quarter due to economic volatility and the trend is unlikely to change in 2017. As a result, dealmakers are beginning to look to secondary and tertiary markets where there is less cap rate compression. For the third quarter, the office market was the only net lease sector in the black, with $15.8 billion in sales volume, representing a nominal .3% gain for the quarter. Industrial saw only $8.6 billion in sales volumes, a 31.1% year-over-year decrease, while retail sales volumes were $7.1 billion, a 37.9% year-over-year decrease. To gain some more perspective, we sat down with Matthew Berres, SVP in JLL’s Los Angeles office, for an interview about the net lease niche and what is in store for 2017.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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