Is Brick and Mortar Retail Doomed?

There have been many headlines asking similar questions. People have been worrying about the increasing percentage of transactions taking place online. This worry only gets worse when they hear the news about store closings. The “Retail Apocalypse” as many have dubbed it, is not true. While there have been many store closures, in 2017 there will be more stores opening than closing.

News of many retailers such as, Radio Shack, Payless, HHGregg, Sears, Kmart, and JC Penney, struggling and stories about malls being on the brink of extinction paint a dreary picture. The store closings are more than offset by …

Traci BidingerIs Brick and Mortar Retail Doomed?

How is the Quick Service Restaurant (QSR) Sector Faring in the Net Lease World?

Fast food is everywhere. There seems to be a McDonald’s or Starbucks on every corner. This proliferation of fast food has led to the Quick Service Restaurant (QSR) sector accounting for the highest percentage of net lease sales nearly every quarter.…

Traci BidingerHow is the Quick Service Restaurant (QSR) Sector Faring in the Net Lease World?

Why should investors hire a net lease broker?

Could an investor purchase a property without the help of an advisor? The short answer is yes, it is possible to purchase a property without enlisting the help of a broker, but it there are many reasons an investor should not go about this alone.

Brokers will make the process much easier for investors. A broker will be able to match an investor’s preferences with current properties on the market. The net lease advisors will know where cap rates are, and will be able to steer clients away from deals that are above market price. Staying up-to-date will allow brokers …

Traci BidingerWhy should investors hire a net lease broker?

Surround Yourself with Experienced Professionals When Purchasing Your NNN Asset

In the decade following “The Great Recession” net lease assets have forged their place amongst the portfolios of real estate investors. The increasing popularity of net lease assets has permitted the capitalization rates (cap rates) of these assets to remain stable, even after significant interest rate increases in recent months. Despite a 62 BPS increase in the 10-Yr Treasury Note yield since Quarter 1 2016, cap rates on single tenant net lease (STNL) properties have decreased 13 BPS over the same time period.…

Traci BidingerSurround Yourself with Experienced Professionals When Purchasing Your NNN Asset

Three Common Net Lease Acquisition Mistakes

Real estate has become the largest sector of the US economy over the last 50 years. The real estate sector currently composes 13.1% of the United States’ GDP, and produces $2.4 Trillion annually. The popularity of real estate as an investment stems from the tangible nature of the assets purchased, and the security provided from long term leases. Real estate has become one of the largest asset classes in the world, and investors have begun to recognize single tenant net lease (STNL) properties as one of the best investment types available. These properties have minimal landlord obligations, as the tenant …

Traci BidingerThree Common Net Lease Acquisition Mistakes

1031 Exchange Outlook

Congressional members from both parties have discussed reforming the tax code over the coming years. House Republicans, led by Paul Ryan, introduced “A Better Way,” while Democratic Tax reform was introduced under Barack Obama’s FY 2017 Budget Proposal. “A Better Way” and President Trump’s tax proposal, make no mention of repealing Section 1031, and does not include provisions to ensure it remains unchanged if tax reform occurs. This could have a significant impact on the Triple Net Lease market and deal flow if it is not addressed.

President Trump has indicated his desire to simplify the tax code, …

Matador Solutions1031 Exchange Outlook

Evaluating a Single Tenant Net Lease (STNL) Investment

The old adage is location, location, location.  However, that’s only one small part in evaluating a net lease investment. There are actually several key components you must look at when analyzing any opportunity.…

Traci BidingerEvaluating a Single Tenant Net Lease (STNL) Investment

Market Expectations

We’re closing out the first quarter of 2017 and expectations on both sides of the table are set. With the new administration, sellers believe that even with a slight uptick in interest rates, they will still be able to garner the fantastically low cap rates we have been achieving for the last several years. Conversely, buyers are of the mindset the needle will start to point in their favor as the increasing interest rates will continue to push cap rates, providing an advantage at the negotiating table. Ultimately, what we are seeing in the net lease market is a stalemate.…

Matador SolutionsMarket Expectations

How Will Current Legislation and Regulatory Proposals Affect Your STNL Property?

There is no (little) cause for worry in response to the increasing presence of whispers of heightened regulation in regards to lease accounting procedures, sale-leasebacks, and 1031 like-kind Exchanges. There are two main regulations that have caused the most interest amongst real estate professionals, credit agencies, and investors; the change in accounting practice requiring all leases to be placed as assets and liabilities on the balance sheet of companies, and the various tax plans that propose limitations or the elimination of the 1031 Exchange in some manner. Due to the obligatory nature of a company’s lease obligations, there is widespread …

Matador SolutionsHow Will Current Legislation and Regulatory Proposals Affect Your STNL Property?

Understanding the C-Store Net Lease Sector

What is a C-store?

A convenience-store (commonly referred to as C-store) is a small retail business, often in a single tenant net lease building that stocks an array of everyday items such as groceries, snack food items, tobacco products and over-the-counter drugs, toiletries, etc.  Impulse items consumers want readily available and don’t have the time or patience to venture into a typical grocery store, and while serving the mobile community.  According to NACS, there are over 154,000 stores that account for more than $575 billion in sales.  124,374 of these stores, approximately 80%, sell fuel.…

Traci BidingerUnderstanding the C-Store Net Lease Sector