Single tenant net lease properties remain a hotbed of activity in the commercial real estate industry. And market fundamentals point to continued strength in the sector.
Yet sentiment has begun to soften ever so slightly based on the responses to NREI’s second annual exclusive survey of the net lease real estate sector, which was conducted in February. Rising interest rates and general economic uncertainty remain concerns, as does the lack of stability in Washington emanating from the chaos of the new Trump administration.
While respondents are hoping for the best in terms of the investment climate, it’s unclear whether Trump’s economic agenda will ultimately help or harm net lease development and investment.
The NREI research report on the net lease sector was completed via online surveys distributed to readers of National Real Estate Investor in February. The survey yielded 371 responses. Recipients were asked what regions they operated in (and were allowed to select multiple regions). Overall, 47 percent said they operated in the South, along with the East (44 percent), the Midwest (41 percent) and the West (47 percent). Approximately 63 percent of respondents are investors and/or developers. More than half of respondents (54 percent) hold the titles of owner, partner, president, chairman, CEO or CFO.