What’s Happening in the Net Lease Market This Week? April 20, 2020

  • Drugstores are the most listed property subtype on our team.
  • Interest is NNN properties with creditworthy tenants like Walgreens, CVS, BB&T, and Wendy’s is up about 4X compared to before the COVID-19 epidemic.
  • All cash 1031 buyers are in the market looking for deals before the recently extended July 15, 2020 deadline.
  • Drugstores and banks are hot, in high demand from CRE investors.
  • QSR drive-though properties are in high demand, due to their ability to continue to operate strong with these COVID-19 market conditions. The COVID-19 epidemic has changed consumer behavior through social distancing. It’s expected that many people will continue to practice social distancing, in a less strict manner, for an extended period of time after the COVID-19 outbreak fades. Drive-through quick-service restaurants will continue to popular with consumers as they offer on-demand prepared foods, as opposed to waiting for delivery.
  • Many national franchises are pushing for rent breaks
  • The banks listed are good deals, only option in the area
  • Lenders are not financing multi-tenant retail deals.
  • Multi-tenant retail owners continue to face challenges collecting rent and forcasting what’s next.
  • Every investor is looking for a “good deal” right now, but the consensus is that most are not clear on what a “good deal” looks like.
  • Multi-tenant retail and multifamily are the hardest hit CRE sectors right now.
Michael Salafia
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