Net Lease Investment Bounces Back with More Opportunities



Although the April jobs report found investments being better than expected, the triple net lease market saw a decrease in overall activities by the end of April.

Top investors are holding back while new investors are exploring the market with smaller investments.

The confirmation that wages have continued to trend higher in recent months has turned the market around.

Net lease investments are now considered to be one of the most appealing markets. According to industry experts, there are three underlying reasons why the market is at its best right now.

A Developing Trend

The decline in expected return from the net lease sector affected Real Estate Investment Trusts (REITs) and specific markets. The fall triggered a drop in expected return for traditional REITs. While the decline was minimal – almost negligible at only 1% – it was enough to ignite new market sentiment against net lease investments.

The market responded beautifully with the major indicators showing positive signs of imminent growth. Investment volume in the NNN property sector is growing at a steady rate, and occupancy rates returned to the expected level. Combined with the influx of new investors, we’re looking at a strong bullish trend shaping up.

The newly developing trend presents the perfect opportunity for investors. Top firms such as TripleNet Gateway are actively exploring the NNN property market in several areas to cater to the increasing demand. Other companies are expanding to new markets to capitalize on the potential growth.

Lower Entry Barrier

In the old days, entry to the NNN property market was difficult. Some key investors did their best to maintain an exclusive market by increasing entry barriers and making the market inaccessible to private investors and small businesses. These obstacles are no longer present thanks to the internet and the wealth of resources available today.

Finding potential triple net lease properties to invest in is now very easy to do. Getting a clearer picture of the market, connecting with the right renters, and managing investment risks are also easy to do. On top of that, we now have firms specializing in NNN properties, providing investment guidance and services to make the whole process even more accessible.

Commercial and Personal Properties

The majority of the triple net lease market is filled with commercial properties; this is a good thing. The economy is providing the right platform and ingredients for new businesses to thrive, increasing the demand for commercial properties by a large margin. The growing demand for commercial space is the final element that helps form the NNN property trend; however, it is not the only one.

Triple net leased apartments, and personal properties are also very popular. Combined with investment instruments such as a 1031 exchange, there is no shortage of investment opportunities to explore. More importantly, the potential returns offered by these new opportunities are just as lucrative – if not more – as commercial buildings.

Combined, these three elements are forming the perfect storm; the right environment in which the market for triple net lease property can reach new heights. Experts believe it will not be long before growth rates start to climb as well.

Source Article from http://www.hangthebankers.com/net-lease-investment-bounces-back-with-more-opportunities/

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