{"id":1004019940,"date":"2010-05-06T08:47:05","date_gmt":"2010-05-06T16:47:05","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004019940"},"modified":"2022-11-28T17:52:58","modified_gmt":"2022-11-29T01:52:58","slug":"transaction-activity-signals-return-of-liquidity-to-net-lease-market-2","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\/","title":{"rendered":"Transaction Activity Signals Return of Liquidity to Net Lease Market"},"content":{"rendered":"<p>By Jeff Hughes, Senior Director, Stan Johnson Company<\/p>\n<p><a class=\"highslide\" href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2010\/05\/Jeff-Hughes1.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004019941\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\/jeff-hughes-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2010\/05\/Jeff-Hughes1.jpg\" data-orig-size=\"1500,2100\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;unknown&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Jeff Hughes\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2010\/05\/Jeff-Hughes1.jpg?w=731\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2010\/05\/Jeff-Hughes1.jpg\" alt=\"\" title=\"Jeff Hughes\" width=\"150\" height=\"150\" class=\"alignright size-thumbnail wp-image-1004019941\" \/><\/a><\/p>\n<p>While it\u2019s clear we are not entirely out of the woods yet, the commercial real estate market, much like the broader U.S. economy, is showing some encouraging signs of  recovery. Investment sales volume is picking up from the bottom, capital is coming off the sidelines, and current pricing of assets appears to be bridging the gap between buyer and seller expectations. <\/p>\n<p>The net lease property marketplace in particular is showing its resiliency. Data from Real Capital Analytics shows that, in general, sales volume for single-tenant properties has decreased less than it has for their multi-tenant counterparts, while cap rates have increased less for the single-tenant sector. In admittedly the most extreme example, during the 12 months through Q1 2010, the single-tenant office sector\u2019s sales volume was down 7 percent from the previous 12-month period. That compares favorably to a 66 percent decline for multi-tenant office property sales. In terms of cap rates, single-tenant office properties increased by 107 basis points versus 243 bps for multi-tenant office during the same timeframe.<\/p>\n<p>In fact, in the net lease marketplace\u2014Stan Johnson Co.\u2019s area of expertise\u2014we are seeing a relatively rapid recovery in sales of the highest quality assets. Solid class A properties in major markets are in short supply right now, yet are in demand by buyers to such an extent that we see those that do come to market trading quite quickly and at aggressive prices\u2014even at declining cap rates. <\/p>\n<p>This is, without question, a result of the increased focus on fundamental underwriting\u2014fundamentals that, it is clear with the benefit of hindsight, were lost in the froth of the previous market boom. Today, net lease property buyers do not take for granted a tenant\u2019s credit quality, but pay close attention to market vacancies, going market rental rates, location quality, and the like.<\/p>\n<p>Whether net lease properties in particular or commercial real estate in general, we believe a key sign of a healthy marketplace is the existence of ample liquidity. And while we have not returned to the liquidity that characterized the market just a few short years ago, we clearly see evidence of increased liquidity in the net lease sector in the form of increased transaction levels. <\/p>\n<p>Thanks to the difficult but ultimately healthy correction that has taken place in asset pricing, investors are now shedding their \u201cwait and see\u201d stance and are coming back from the sidelines to actively trade net lease properties. Meanwhile, lenders are picking up their debt financing activity (cautiously and gradually, yes, but another move in the right direction) and are focused on stable properties in strong markets; net lease assets can fit that bill nicely. Those two trends combined make for a promising, and sensible, net lease property marketplace for the remainder of 2010 and beyond.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While it\u2019s clear we are not entirely out of the woods yet, the commercial real estate market, much like the broader U.S. economy, is showing some encouraging signs of  recovery. <\/p>\n","protected":false},"author":1104,"featured_media":1004019941,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1004019940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Transaction Activity Signals Return of Liquidity to Net Lease Market - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transaction Activity Signals Return of Liquidity to Net Lease Market\" \/>\n<meta property=\"og:description\" content=\"While it\u2019s clear we are not entirely out of the woods yet, the commercial real estate market, much like the broader U.S. economy, is showing some encouraging signs of recovery.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2010-05-06T16:47:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-29T01:52:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2010\/05\/Jeff-Hughes1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"2100\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jeff Hughes\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\\\/\"},\"author\":{\"name\":\"Jeff Hughes\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/8d6f36feeb4fc0d0d1aee74033df8384\"},\"headline\":\"Transaction Activity Signals Return of Liquidity to Net Lease Market\",\"datePublished\":\"2010-05-06T16:47:05+00:00\",\"dateModified\":\"2022-11-29T01:52:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\\\/\"},\"wordCount\":480,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2010\\\/05\\\/Jeff-Hughes1.jpg\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/transaction-activity-signals-return-of-liquidity-to-net-lease-market-2\\\/\",\"name\":\"Transaction Activity Signals Return of Liquidity to Net Lease Market - 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