Conferences & News

Current STNL Newsletter

Market Update

2015 vs. 2016 Net Lease Trends "By the Numbers"

CoStar compared transactions, deal size, cap rates, and average price/square foot from 2015 to 2016 YTD for the most common price range of single tenant retail NNN deals - between $1,000,000 -$3,000,000. The chart below sums it up – most notably – prices are up from $1.8M to $1.9M. Correspondingly, cap rates are also lower – down from 6.5% to 6.3%. And if 2016 ends at the same rate, total transactions will be less than 1100 – significantly fewer than the 1434 in 2015. What may be the cause of this, if the numbers hold? Decreased supply?

Triple Net REIT Roundup - Morgan Stanley Net Lease Survey says "Broker Sentiment Remains Muted but Overall Environment Still Supportive"

The results of Morgan Stanley’s quarterly AlphaWise "Triple Net REIT Roundup," which gets a market view from 25 national single tenant net lease brokers (Bull Realty's Nancy Miller among them), says that "triple nets are still the best performing REIT subsector YTD - up over 20%, as the companies have benefited from a flight to safety and the low rate environment." Over 55% of brokers rank supply/demand imbalance as the top factor to impact deal volume for the remainder of 2016. Brokers were less concerned about asset quality and interest rates... Read more


Industry Soundbites

How can STNL investors better navigate in this environment?

Dollar General hangs help wanted sign According to Seeking Alpha, DG plans to hire 10,000 new employees to fill current openings and planned store openings...Read more

Jimmy John's Once of 3 Brands Sold This Week Atlanta-based Roark Capital acquired a majority stake in Jimmy Johns, putting the sandwich shop in a list with Auntie Anne's, Cinnabon, and Schlotzsky's, according to QSR Magazine...Read more

Once jobless and uncounted, eager workers could slow Fed rate hike According to Reuters, workers are moving from outside the labor force directly into jobs at a record pace which could influence the pace of interest rate increases...Read more

Advance Monthly Retail Investories The U.S. Census Bureau reported that advance estimates of U.S. retail and food services sales for September, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $459.8 billion, 2.7% above September 2015...Read more

Coming Next Month...Highlights of the QSR Drive-Thru Study




Arby's | Net Lease Investment | 5.5% Cap Rate | 3,034 SF

26026 Northwest Freeway, Cypress, Texas

Bull Realty is pleased to offer this absolute NNN Arby’s single tenant net lease property for sale, located in Cypress, Texas, in the NW section of Houston. The property is fronted by US Hwy 290 with over 96,000 vehicles per day and is an outparcel to a Lowe’s retail center that includes Panera Bread, Firestone and Wells Fargo. The store is operated by Atlanta based Arby’s Restaurant Group and has 13 years remaining on the primary lease term with four 5 year renewal options. Rents increase an average of 5+% every five years. The immediate trade area features other major retailers and restaurants including Home Depot, Wal-Mart and more. The three mile population is over 60K with an average household income of $129K.

-  13+ years remaining on a 20 year term NNN lease with four 5 year options.

-  5.5% cap rate with 5%+ increases every 5 years.

-  NNN corporate lease guaranteed by Atlanta based Arby’s Restaurant Group, Inc.

-  96,000+ VPD fronting the main thoroughfare, Hwy 290.

-  $130,754 average HH income with a projected population growth of 3.24% within a 5 mile radius.

- Located 21 miles NE of the Houston’s CBD, the 4th largest metro area in the nation.

-  Outparcel to Lowe’s that including Panera Bread, Wells Fargo and Firestone.

Randy Reid, TX #333073, Broker of Record

Call 404-876-1640 

On The Radio

Nancy Miller, President of the National Net Lease Investment Group, Bull Realty, Inc. and Scott Lindstrom, Director of Real Estate and Development with Garrard Group joined Michael in Studio One to share some single tenant property investment tips .

You're invited to contact us at 404-876-1640 if we might be of service in any way.