NNN for Sale: A Near Perfect Match

NNN For SaleDespite two recent revolutionary changes in the market, NNN for sale still seems to be exciting for real estate investors. So, the-here-and-now fundamentals remain lucrative even after the introduction of tax targeting 1031 exchanges and an interest rate hike. When it comes to NNN for sale, the market has not lost any of its vigor. A rise in real estate investment cements this notion even more.       

A Sweet Problem

The only problem in the NNN market is lack of supply. The compressed cap rate makes it clearer. And, there is no apparent reason to believe that the propitious supply-side dynamic will be eased through building new properties. The pipeline is growing steadily, but not more than a modest pace. Moreover, the recovery for net lease has been subdued. The reason is nothing new: banks are still making sure that their lending is risk free.

Real estate experts have expressed that as the economy reaches a new height, more and more people are putting their capital at work. But, it is however failing to speculative building. The volume of projects has grown significantly than a year before the same time. Unless there is a full-fledged strategy to overhaul the whole construction phase, the future seems to be opaque, as usual.

The CBRE, a firm that was involved in a recent $81 million sale of single-tenant Lowe’s Home Improvement stores and four freestanding, mentions an uptick in construction. It also includes that it is a function which works in collaboration with retailers and the economy. Some prominent retailers like Walgreens have however stepped back from their previous stance to build more. Instead, the majority of retailers are allocating more behind renewing and revamping their existing outlets. This dissipates any remaining chance of a sudden surge in supply in the NNN property market.

About the Author

Dwaine L. Clarke is the Founder and President of GCT Net Lease. GCT Net Lease is an investment real estate services firm exclusively focusing on Single and Mult-Tenant Net Lease Properties. The firm provides a full range of brokerage and advisory services nationwide to High Net worth Investors, Developers, REITs and Institutional Investment Funds. GCT Net Lease is headquartered in Windsor Connecticut. Dwaine is also a nationally recognized speaker and consultant. He is also the author of three best selling commercial real estate investing books. Mr. Clarke’s experience branches through close to over a decade of working with and for some of the nation’s top investors to purchase, underwrite, develop and manage millions of dollars in commercial investment real estate. For his case, he has not only assisted these investors, but also became a student of theirs. Through careful analysis he started to understand what these investment experts were doing, using top strategies to buy, manage and sell their investment properties for maximum profit. He especially took note of how these investors were leveraging their time and how they made their decisions without interfering with their personal or business lives. Mr. Clarke is also active in investing and creating real estate partnerships, providing a vehicle for high net-worth individuals to own income producing real estate.

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