{"id":1004813004,"date":"2026-09-24T08:30:10","date_gmt":"2026-09-24T16:30:10","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004813004"},"modified":"2026-09-24T08:40:49","modified_gmt":"2026-09-24T16:40:49","slug":"with-rising-rates-net-lease-is-a-great-alternative","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/with-rising-rates-net-lease-is-a-great-alternative\/","title":{"rendered":"With Rising Rates, Net Lease Is a Great Alternative"},"content":{"rendered":"
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\"Jonathan
Jonathan Hipp<\/figcaption><\/figure><\/div>\n\n\n

Investing is seeing a double rate whammy.<\/p>\n\n\n\n

For the first time since 2023, the Federal Open Market Committee raised the federal funds rate a quarter point. Meanwhile, the yield on the 10-year Treasury note is hovering around 5.00 percent.<\/p>\n\n\n\n

Equity markets have taken this well so far, although they may face challenges in the near future due to growing uncertainty about technology companies and AI. <\/p>\n\n\n\n

But the short- and long-term lending impacts have deepened problems for private-equity firm portfolios. There is a \u201cgeneration of buyouts that are stuck<\/a>\u201d in financing, according to the Wall Street Journal.<\/p>\n\n\n\n

Scott Kleinman, co-president of Apollo Asset Management, speaking at a recent Barclays conference, predicted a \u201csqueezing of the number of managers\u201d who \u201cwere more dependent on 0 percent interest rates than they were on anything else.\u201d The lack of liquidity already has affected the ability to return capital.<\/p>\n\n\n\n

Family offices and ultra-high-net-worth individuals looking to include alternative investments in their portfolios should watch the J.P. Morgan Asset Management playbook. For the first time in its history, the firm has a U.S. net-lease fund that just obtained $1.1 billion in commitments, more than double the original $500 million target, according to CRE Daily. Pledges came from institutional and private wealth investors around the globe.<\/p>\n\n\n\n

The net-lease market has been strong. Compilations of data from multiple commercial real estate monitoring services suggest that by the end of Q2 2026, the trailing 12-month dollar volume of single-tenant net-lease retail sales was close to $70 billion, the third-highest figure since 2000. Deal volume was the highest over that period. Private investors were 73 percent of STNL retail dollar volume through June 2026. Year-over-year dollar volume increased by 9.9 percent. STNL retail transactions increased by 9.6 percent. STNL retail transactions in 2026 were 64 percent higher than the 2014 to 2019 annual average. <\/p>\n\n\n\n

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CPE Capital Markets Newsletter<\/h2>\n\n\n\n

Executive Editor Therese Fitzgerald delivers the capital markets intel that moves the needle.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n

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