With cap rates reducing and values increasing the past ten years, is the single tenant net lease market perhpas reaching a tipping point? Michael and his guests, Nancy Miller, SVP at Single Tenant Net Lease Group, and Tim Kinney,VP Capital Markets at Marcus & Millichap, discuss whether now may be the best time to sell single tenant properties. Highlights of this video include:
- Nancy Miller
- Believes if a lot of term is left on lease, it is a good time to sell
- If a short lease with good real estate, may make sense to hold
- Has had 2 instances recently where their offer to buy (for 1031) was turned down for a higher offer, only to have buyers later return to them, hat in hand, to take their offer, only to find it was too late
- Tim Kinney
- Believes the tables have definitely turned, with market strength now waning
- Interest rates on debt is causing deals to be re-calibrated
- Believes sellers will agree to sell at incrementally higher cap rates