As we wrap up 2013 with the joyful celebrations and shining lights of the holiday season, it’s only appropriate we give thanks for positive trends from 2013 and look forward to 2014.
1. New development is starting to break ground. Finally this year solid news has been reported that new developments are actually underway and in the dirt. Ever since the recession there has been a lack of new construction and it looks like we are finally building again.
2. Financing continues to be easier to find (despite rising interest rates). Financing today continues to be much easier to obtain than in the dark days of the recession a few years ago. Even the specter of rising interest rates hasn’t pushed this trend back.
3. Net lease investors can look forward to rising cap rates – for potential net lease sellers, this may be the time to put your product back on the market. Rising interest rates mean cap rate compression is finally over. Already in the latter half of this year we’ve seen cap rates increase. This will only continue in 2014 as interest rates continue to slide upward.
4. Net lease assets continue to be one of the safest, most dependable investments. Sometimes its good to give thanks to the basics and one of the fundamental selling points of net leases – their security – continues to be the gift that keeps on giving.
5. Activity in the net lease market continues to be very high. Even with a lack of properties on the market – the hunt for those properties is fervent. Investors have great appetite and net leases provide a delicious investment opportunity.