Why Do Western Net-Lease Buys Pencil?
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Alison: “Net-lease retail-property sales completed in the West region between January 1 and July 1 of this year totaled $2.55 billion, a 49% increase over the first half of 2014.”
SAN DIEGO—“Buyers are attracted to net-lease retail properties in the West because of historical performance,”Stan Johnson Co.’s regional director-West Sam Alisontells GlobeSt.com. We spoke exclusively with Alison duringICSC’s Western Division Conference here this week about what makes net-lease investment in Western properties so attractive. Stay tuned for more post-ICSC coverage on GlobeSt.com over the next few days.
GlobeSt.com: How would you describe investment activity for net lease retail properties in the West region?
Alison: The first six months of 2015 were very robust for investment sales of net-lease retail properties in the West region. The supply-demand imbalance continued to push down cap rates. According to our company research, net-lease retail-property sales completed in the West region between January 1 and July 1 of this year totaled $2.55 billion, a 49% increase over the first half of 2014. The average cap rate for net-lease retail sales in the West region during the first half of 2015 was 5.6% as compared to 6.2% as of July 2014…
