Press Release

The Economy Thrives. Single Tenant Net Lease Market Soars.

Calkain Releases Net Lease Economic Report, Semi-Annual Edition.

Herndon, VA – Calkain today released its latest Net Lease Economic Report, Semi-Annual Edition.  Despite a barrage of negative news with trade wars, chemical warfare, and political unrest, the economy continues to soar.  The economic strength bodes well for developers and owners of commercial real estate.

According to the report, “Consumer spending is enhanced with each and every net new job created, which has particular salience in the single tenant net lease market.  Consumer and business confidence also tend to drift higher, inducing further household and enterprise outlays into the economy.”

Key highlights:

  • The economy is thriving with a roughly 3% GDP, unemployment broke the 4% threshold and may hit half century slow by mid-2019.
  • With the potential of more rate hikes this year, the yield curve could easily be inverted by year’s end which in past has signaled a slowing economy.  However, many economists would suggest this time is different.
  • Net lease properties continue to be among the best performing investment vehicles in the U.S., even as the economy hums along in the 10th year of the latest economic expansion.
  • Average cap rates rose in nine of eleven subsectors of net lease, largest increases noted in the Automotive and Pharmacy sectors.
  • In the short-run, the economic momentum should carry us through well into 2019.  Government policies on tariffs, tax reforms and rising inflation and interest rates will play a role in the timeline and makes the waters a bit murkier in the long-term.

For the full report, visit 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, capital markets, 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.

Traci BidingerThe Economy Thrives. Single Tenant Net Lease Market Soars.

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