Herndon, VA – Calkain Teams with Sage Policy Group to Deliver Net Lease Economic Report.
Calkain released its Net Lease Economic Report earlier this week predicting a second quarter bounce back after a relatively slow beginning to the year. Having teamed up with Sage Policy Group, Inc., the report begins with an overall look at the economy, before focusing in on the net lease sector of commercial real estate.
“Economic prospects, which had looked quite promising beginning the year, are now moderating,” said Anirban Basu. “Consumer spending has continued to disappoint, even in the face of low unemployment and stable wage growth. The result has been a wave of retail store closings. Second quarter growth has been better, but a combination of forces has rendered the economic outlook for future quarters less clear. This set of circumstances will continue to support significant interest in the single tenant net-lease market, with its combination of tenants with strong balance sheets and disproportionate emphasis on consumer staples.”
“After a slow Q1, and a pick-up in activity thus far in Q2, we have cautious optimism for an active remainder of the year,” stated Jon Hipp, President and CEO of Calkain. He continued, “With a slight retraction in 10-Year Treasuries, and an uncertainty with potential interest rate hikes, the STNL sector generally emerges as a favorable investment for those seeking to deploy capital. The net lease market offers a passive investment with reliable fixed income cash flow.”
According to Calkain research, as of Q1 2017, the average STNL cap rates were 6.32% as compared to the 10 Year Treasury landing at 2.40%. To view the report, click here.
Calkain Companies is a commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant net leased properties through all aspects of the transaction including advisory, brokerage, debt placement, equity placement, asset management and research. Calkain has a national platform with multiple office locations throughout the entire East Coast. Additional information about the firm and listings may be found at calkain.com.
Sage Policy Group, Inc., was established in 2004 by Anirban Basu. Sage is an economic and policy consulting firm specializing in economic, fiscal and legislative analysis, program evaluation, and organizational and strategic development. The firm’s clients include public agencies, law firms, developers, money managers and an array of nonprofit organizations. As experts in research methods, their corporate focus is to utilize sound, widely accepted analytical techniques that provide their clients and stakeholders with valid and reliable information to support critical organization requirements. More information can be found at sagepolicy.com.