FORT LAUDERDALE, FL - When it comes to retail investment sales,
single-tenant, net-leased properties are still the place to be.
Unlike multi-tenant properties, single-tenant, net-leased properties are moving well in this recessionary environment due to high demand, clear pricing, consistent underwriting, and little discrepancy between buyer and seller perceptions of the deal.
It seems obvious that Good
credit tenant, Net-Leased Properties will go quick.
By contrast, sales of multi-tenant retail properties are few and far between. There appears to be gaps between buyer and seller expectations, with many buyers still waiting for REOs to materialize. Plus, debt financing with acceptable terms is still hard to find.
Also Owners of better-quality products (
Triple Net Lease Properties) are keeping those properties in their portfolio to help with the cash flow of under performers.
Cap rates - while higher - are holding their ground, but only in the
single-tenant sector. Cap rates for any multi-tenant deals are being determined on a case-by-case basis relative to occupancy, value of the rent roll and other factors.
Many Buyers were on the sidelines waiting for higher Cap Rates. Although there are still people waiting for rock-bottom opportunities.
Reasonable caution is something we always should have been exercising. Now we have fear and over-caution among buyers, sellers and Lenders.
