The Boulder Group brings more good news for net-lease market

Walgreens remains a strong performer in the net-lease market.

by Dan Rafter

The single-tenant net-lease sector remained a busy one in 2017, according to the latest research from the Boulder Group. And in even better news, Boulder Group researchers predicted that this commercial sector will remain busy throughout the year.

The Boulder Group reported that a significant number of net-lease properties entered the market in the first quarter, with the supply of these properties increasing by about 20 percent when compared to the fourth quarter of 2016.

Most of this increase came from the retail sector, with the number of these properties jumping by 24 percent in the first quarter of this year when compared to the last of 2016.

According to the company’s report, there were 3,788 single-tenent net-lease retail properties on hte market in the first quarter of 2017. In the fourth quarter of last year, there were 3,045 of these properties on the market.

The office portion of the net-lease sector saw an increase of 2.8 percent in the first quarter. The Boulder Group said that there were 384 net-lease properties on the market in the fourth quarter of 2016 compared with 395 during the first quarter of this year.

In industrial, the number of net-lease properties on the market actually slipped slightly in the first quarter. According to the Boulder Group’s research, the number of net-lease industrial properties stood at 363 in the fourh quarter of 2016 and 359 in the first quarter of this year.

For all of 2016, the net-lease market had a total transaction volume of about $54 billion, according to research from CoStar. That’s down 7 percent from 2015, which saw more than $58 billlion in net-lease sales. But that 2016 figure is still strong one. The Boulder Group attributes the slight tick downward to uncertainty about interest rates and the 2016 presidential election.

What does the rest of 2017 hold for the net-lease market? In its report, The Boulder Group predicts that this market will remain busy throughout 2017 as investor demand, especially from private investors, continues to rise.

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