Assessing the Risk and Return Profile

Defining the pattern and sources of return for commercial real estate as a distinct asset class is important, but investors typically hold portfolios of properties that differ markedly from the broad asset class1.

Real estate investors often employ significant amounts of leverage, may concentrate their holdings in a few properties or locales, or take on higher-risk development projects. These activities, alone or together, can transform a low-risk, income-oriented portfolio into a high-risk, appreciation-oriented holding, with important implications for asset allocation. Generalizing about real estate as an asset class may be inadequate when advising clients about their specific holdings …

Amanda WillisAssessing the Risk and Return Profile

NNN Dialysis Clinics for your Portfolio’s Health

Mention the words “triple net properties,” and what could come to mind are the Starbucks down the street, or the Dollar General store across town. In truth, most property types can have triple net tenants. Smaller medical assets, in fact are attractive net lease investments. Stand-alone urgent care centers, surgical centers and plasma clinics can offer low-entry price points, credit-worthy tenants and steady income flow.…

Traci BidingerNNN Dialysis Clinics for your Portfolio’s Health

Differences between STNL vs other forms of investing

Single Tenant Net Lease (STNL) assets are illiquid investments with high transaction costs. Attempting to navigate the market requires the help of a seasoned broker, and any attempts to exit the market takes time, the purchasing party will conduct their due diligence on the property during the escrow period. So why do people continue to choose to invest in commercial real estate when there are so many other options with higher liquidity and lower transaction costs?

The simple answer is the benefits out-weigh the drawbacks. First, the returns on real estate compared to other types of investments. Over the last …

Traci BidingerDifferences between STNL vs other forms of investing

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, …

Traci Bidinger1031 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