LOS ANGELES—As prices increase and cap rates compress, retail net lease investors are starting to look outside of Los Angeles for investment opportunities. The trend has been building for the last year, and is only getting more extreme. It’s especially hitting trade deals, according to Ryan Bennett and Ryan Barr, principals and net lease investment experts at Lee & Associates. Investors are trading out of Los Angeles assets into those in other markets, with a preference for Texas and the Midwest. In some cases, investors are finding increases of 150 basis points.
At the ICSC Western Conference and Deal Making event, we sat down with Bennett and Barr for an exclusive video interview to talk about this emerging trend. Bennett and Barr tell us what’s behind the investor exodus, which geographies are becoming the most popular for net lease investors, and why they believe this trend will remain an investment theme through 2018 and beyond. Press play to find out more.