Tag: globest.com

Smaller Formats, Huge Investment Potential

GlobeSt.com

We are entering “the incredible shrinking store format” period. Thanks to the increasing popularity of e-commerce and changing tastes of shoppers, retailers are shuttering low-performing outlets and reducing real estate footprints.

Target is expanding in densely populated areas with smaller-format stores, typically 12,000 – 40,000 square feet. These smaller-format stores are a far cry from the retail company’s suburban, full-size, 130,000 square-foot, centers.  Target is not alone in the size reduction, Walmart, Kohl’s, and Nordstrom are also experimenting with smaller

Amanda WillisSmaller Formats, Huge Investment Potential

Finmarc Sells Off Pieces Of the First Potomac Portfolio

GlobeSt.com

CHANTILLY, VA–Two years ago Finmarc Management closed on First Potomac Realty Trust’s 950,000-square foot Northern Virginia portfolio for $96 million. It has been selectively selling off assets since then, including most recently two holdings for $7.2 million.

Two flex/office/warehouse buildings comprising 56,076 square feet within the Enterprise Center here traded to 10th Street, LLC. Caulley Deringer and Andrew Hassett of Transwestern represented the seller and Andrew Fallon of Calkain Companies represented the buyer in this transaction.

Over the past two years, Finmarc has increased the leased …

Amanda WillisFinmarc Sells Off Pieces Of the First Potomac Portfolio

Investors Continue to Chase Net Lease Cap Rates

GlobeSt.com

The two sectors at either end of the cap-rate change spectrum in Q3 were dollar stores, up 45.1 bps, and pharmacies, which posted a -29.3 shift.

Cap rates’ upward trend continued in the third quarter with an 8-point basis gain, according to to Calkain Research’s Q3 Cap Rate report. Furthermore the trend shows no sign of abating, Calkain goes on to say.

The two sectors at either end of the cap-rate change spectrum this quarter are dollar stores, up 45.1 bps, and pharmacies, which posted a -29.3 shift.…

Amanda WillisInvestors Continue to Chase Net Lease Cap Rates

What is Really Happening with Bank-CRE Lending?

GlobeSt.com

There is nothing ambiguous about CBRE’s recently released report, “Commercial Real Estate Lending Market Remains Robust.” According to CBRE’s Lending Momentum Index, an index that tracks the pace of U.S. commercial loan closings, Q2 2018 numbers have kept pace with those reported in the first quarter. CBRE also indicated that banks accounted for almost half of the non-agency lending volume that closed during the second quarter.

Amid all the good news, the report also said that, “compared to a year ago, June …

Amanda WillisWhat is Really Happening with Bank-CRE Lending?

As QSR Cap Rates Continue to Decline, What’s Behind the Premium for this Sector?

GlobeSt.com

This premium to the STNL average is driven by their leases, locations, and insulation from ecommerce. The typical QSR lease is long (15 to 20 years), with no landlord responsibilities, and rental increases during the base term. QSRs usually operate in buildings with strong real estate fundamentals, good visibility from roads with high traffic counts. These factors not only help the tenant, but make the property attractive to investors.…

Amanda WillisAs QSR Cap Rates Continue to Decline, What’s Behind the Premium for this Sector?

A Sector-by-Sector Look At Net Lease Cap Rates

GlobeSt.com

For the first half of this year, the average cap rate rose in nine out of the 11 net lease subsectors compared to the same period last year, according to the Calkain Cos.’ Semi-Annual Net Lease Report.…

Amanda WillisA Sector-by-Sector Look At Net Lease Cap Rates

What Happened To Net Lease Over The Last Quarter?

GlobeSt.com

Cap rates overall have seen an up-tick, but at a manageable pace, while core assets continue to trade at historically aggressive pricing

ap rates are beginning to move, the average cap rate for single tenant net lease (STNL) properties rose 17 basis points from Q1. The major driver of this movement was a change in the types of leases, with more double-net leases closing during Q2. The pharmacy and automotive sectors had the largest uptick in cap rate. This is the third straight quarter over quarter gain in average cap rate.…

Amanda WillisWhat Happened To Net Lease Over The Last Quarter?

Did Amazon’s Acquisition Of Whole Foods Alter The Net Lease Grocery Sector?

GlobeSt.com

While the grocery industry is undergoing changes in tenant mix, technology, and customer trends, the acquisition of Whole Foods by Amazon did not have a noticeable effect on grocery sector.

It was big news when Amazon announced they were buying Whole Foods. Amazon was expected to ramp up their fresh food and cut prices in Whole Foods. Speculations about what this meant for the internet giant and future of the grocery industry ran wild. We wanted to look at a few measurable effects in the net lease market in the 12 months before the announcement of the acquisition and from …

Amanda WillisDid Amazon’s Acquisition Of Whole Foods Alter The Net Lease Grocery Sector?

Is The Rite Aid-Albertson’s Merger In Trouble?

GlobeSt.com

The proposed merger has been met with mixed reactions. Find out what it means to net lease investors.

Rite Aid has been an interesting tenant to follow over the last few years. Walgreens and Rite Aid entered into a merger agreement in October of 2015 before terminating the agreement in June of 2017 over mounting doubt the FTC would approve the action. Walgreens and Rite Aid announced a replacement to the deal whereby Walgreens would acquire 2,186 stores from Rite Aid for $5.175 billion. In September, this was amended to 1,932 locations at $4.375 billion. The agreement closed this past …

Amanda WillisIs The Rite Aid-Albertson’s Merger In Trouble?

Calkain Opens Office In New York City

GlobeSt.com

The company has hired Michael Heneghan to open and run the office.

HERNDON, VA–Calkain Cos. is expanding to its sixth location, this time in New York City.

It has tapped Michael Heneghan, who was Senior Vice President – Investments at Vereit/American Realty Capital Properties, to open and run the new office.

Amanda WillisCalkain Opens Office In New York City