Current STNL Newsletter
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
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