Tag: Hipp

Investor Demand Remains Strong Despite Rising Cap Rates

Herndon, VA – 2016 ended with the Federal Reserve increasing the interest rate by 0.25%, signifying confidence in an improving US economy.  As illustrated in Calkain’s newly released Q4 Cap Rate Report, cap rates in the single tenant net lease (STNL) market are also on the rise, ticking up 18 bps from Q3.  Cap rates will continue to trend upward along with the interest rates, yet still are only at the level they were at this time last year.

While we are witnessing some change, albeit small, is the spread between the US Ten Year Treasury Rate and the …

Emily CusmanoInvestor Demand Remains Strong Despite Rising Cap Rates

The 11th Sector In S&P 500: REITs


REITs have attracted investors looking for a higher yield than can be found in the bond market. Previously, REITs have been included inside the financial sector in S&P 500, but will now be their own sector. This milestone change is slated to occur September 1, 2016.

Real Estate stocks have been included with institutional financial firms and insurance companies since 1999, but the real estate sector has shown increasing demand and now deserves its own classification due to its diverse nature that is different from the rest of the financial sector. Mortgage REITs will however remain with the financial sector. …

Traci BidingerThe 11th Sector In S&P 500: REITs

Why Investors Are Looking to De-Risk Their Portfolios With Net-Leases


The fundamentals of the national economy and the specifics of the current DC development boom have combined to make this a great time to be in the triple net lease game in DC, according to Calkain Cos CEO Jonathan Hipp (above on left with NYU’s Dr. Sam Chandon).

He tells us triple net lease deals continue to prosper in all sectors, but he’s noticed investors from all over the country, and sometimes even internationally, are willing to go the extra mile for the right urban retail deal in the right market and pay an extraordinary cap rate. And DC in …

Mike VangsnessWhy Investors Are Looking to De-Risk Their Portfolios With Net-Leases

The McDonald’s-Burger King Comparison


Both Burger King and McDonald’s are on an upswing. Does one stand tall over the other?

Both McDonald’s and Burger King have been doing well lately from a sales perspective. In the case of McDonald’s, all-day breakfast really does work. McDonald’s has been on a sales tear as of late, reporting a 5.4% U.S. same-store sales jump during the first quarter. The fast-food giant’s turnaround began during last year’s third quarter, when it reversed a two-year trend of decreased sales volume. Additionally, McDonald’s is well on its way to achieving its goal of having a 95-percent franchised portfolio, which …

Mike VangsnessThe McDonald’s-Burger King Comparison

‘Doc-In-A-Box’ Operations Give Net Lease A Lift


Drugstores have always been a big part of retail real estate’s net lease sector. After all, Walgreens and CVS have thousands of stores across the country relied on by investors.

Besides these usual suspects, there is also a crop of urgent-care clinics that are becoming increasingly relevant in the net lease world.

Both developments continue to pick up steam and are good news for the sector.

This “doc-in-a-box”, or retail-clinic trend, gives consumers additional reasons to make trips to net-lease properties.

The in-store facilities, which are found in major drugstores and large discounters such as Walmart, average 200 square feet, …

JD Vangsness‘Doc-In-A-Box’ Operations Give Net Lease A Lift

Dealing With The Inevitable Coming Inflation


Since the onset of the great recession the specter of inflation has always seemed right around the corner; only to be ultimately pushed off further and further by quantitative easing, and a slowly recovering economy.

As we begin to approach full employment and with the Fed now squarely focused on interest rates it seems pretty clear that at least some modest inflation is likely to occur in the next year. This, notwithstanding the outcome of the Presidential election this fall, will undoubtedly be a consequential event.

In fact, inflation rose 2.3% in the last month putting it at its highest …

Mike VangsnessDealing With The Inevitable Coming Inflation