Net-Lease Sector ‘Red Hot’ as Developers Race to Meet Tenant Demand

Investor demand for net-lease properties, those single-tenant assets often perceived as boring but safe alternatives to riskier real estate investments, is spiking to record levels as more confident investors continue to snap up convenience and drug stores, restaurants and other single-tenant retail establishments.

“The net lease market has been on fire,” says JLL Managing Director Guy Ponticiello, who leads the company’s corporate finance and net lease national practice group. “Net lease sales activity is expected to be north of $55 billion this year compared with $40 billion in 2007. There’s a tremendous amount of capital earmarked for the sector.”

Reports by The Boulder Group and Marcus & Millichap pointed to strong sales volume in both the office and retail net lease office and retail categories in the third quarte


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