Net Lease REITs’ Favorable Run to Extend Through 2021

SLB Capital Advisors discussed recent Net Lease REIT outperformance and value drivers which suggest continued upward momentum for the sector.

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Net Lease REITs’ Favorable Run to Extend Through 2021

View the article from September 7, 2021 at GlobeSt.com

  • Scott Merkle discussed recent Net Lease REIT outperformance and value drivers which suggest continued upward momentum for the sector
  • “Of the main real estate sectors, industrial is undoubtedly the most sought-after and has grown even stronger throughout the pandemic,” Merkle said. “It has been the darling property sector for years now with no end in sight. Across most of the United States, demand for industrial properties has continued to increase throughout 2021, vacancies are at all-time lows, and rents have been growing at record levels. Given these strong underlying dynamics, cap rates keep declining and valuations have continued their upward march.”
  • “The influx of new capital is a proxy for deals in the pipeline and they can consummate these deals,” Merkle said. “This is the best time in the history of time to sell corporate real estate and we expect this to be evident in net lease acquisition activity in 2021.”