Net Lease Transactions Rise in Q1

Net lease transaction volume nationally for the year’s first quarter were up during the first quarter, but that was before the major pain from COVID-19 hit the commercial real estate market.

Transaction growth was on pace with 2019 volumes, which saw a 35-increase from the prior year, hitting in excess of $80 billion, reports research firm The Boulder Group.

As a result of COVID-19, net-lease buyers will likely focus on business that are open during stay-at-home orders, such as pharmacies and drug stores.

Says the Boulder report: As a result of the market’s bifurcation between essential and non-essential businesses during the COVID-19 pandemic, there will be limited investor interest in properties that fall
in the non-essential category until there is further stability.”

Read the full report here.