How do NNN assets play a role, as a bond-equivalent investment, in an uncertain environment, like 2018-2019?

Contributing Author: Sean O’Shea

We are always told that ‘Asset allocation’ is critical to your Investment Portfolio. This is true for your real estate portfolio, too.  NNN assets can play a role; but your selection criteria needs to be is more than, merely, debating cap rates, in our experience.  We have stated in a number of prior Net Lease Blogs, Not all Net Lease properties are the same”.   This has never been more true.

The supply of these NNN properties has improved, significantly, since 2009-2010 Great Recession period; and we have a decade of low interest rates, the result of the Federal Reserve policies, with rates gradually moving upwards with rates increasing the margin of error due to very, very thin ‘spreads’. Cap rates going up; not down, as we have had the luxury of low rates in the last ten years.  It covered a number of potential miscues…The Market is, now, changing; and extra care is required for best investor results. Continue reading How do NNN assets play a role, as a bond-equivalent investment, in an uncertain environment, like 2018-2019?

Do You Need Tenant Representation for Office Space?

Contributing Author: William F. “Felton” McLaughlin – CCIM, SIOR

When is it time to start the time-consuming search for new office space? Typically that decision is driven by one or more of the following: an upcoming lease expiration date, space that’s either too small or too large for your current needs, and/or the desire to own vs. lease. Whatever the reason, there are some important things to consider as you head down the sometimes arduous path to finding new office space.

Time– The amount of time remaining on your existing lease term can either be an asset or a liability to you. Tenants that are not sweating out a lease expiration are less likely to be pressured by landlords looking for a quick commitment. So, it is imperative to start the process early before that expiration date starts to erode your negotiating leverage with prospective landlords.

Team– Have you picked the advisors you will need? A short list should include the following: Continue reading Do You Need Tenant Representation for Office Space?

The Professionals Needed for A Cohesive CRE Development Project

Contributing Author: James “Jay” Verro, CCIM

Whether you’ve just been hired to consult with land owners or you are wanting to purchase a parcel of land for any kind of commercial development use, don’t go it alone. Doing so can easily lead to some very expensive learning experiences and will make the progression of the project much more difficult.

Developing, or re-developing, a parcel of land for commercial real estate (CRE) uses takes a variety of skills and expertise. There are critical decisions to be made and numerous processes to navigate at every point of the journey. Prior to even going to the governing municipality for approvals, a property owner needs to develop a team of experienced professionals to provide guidance with these processes and help ensure the best decisions are made along the way. Continue reading The Professionals Needed for A Cohesive CRE Development Project

Time for a “NNN Up Periscope in Q2 2018” from the Great Recession of 2008-09…what is really going on Ten Years later?

Contributing Author: Sean O’Shea

Remember, as we have stated in a number of prior Net Lease Blogs, that Not all Net Lease properties are the same”.  Never more true.

We have just completed a series of IRC 1031 Exchange Transactions, which have provided us a new vantage point:

“Where we are 10 years later” in Q2, 2018?

“Where we may be going for balance of the year 2018-2019?”

Almost all knowledgeable observers and participants in the Net Lease Sector of the real estate industry would, now, admit, that we are in the late phase of this Real Estate Cycle after a whole Decade of Recovery.   The subject matter in industry publications has changed recently.   Subjects have shifted from NNN inventories, to issues of hedging inflation for the 1st time in 10 years, to raising interest rates (and presumably cap rates) moving northward.  Some are even whispering about “A new Recession” in the predictable near term future is new subject matter.  Continue reading Time for a “NNN Up Periscope in Q2 2018” from the Great Recession of 2008-09…what is really going on Ten Years later?

Timing Your Exit Strategy as An Office Landlord

Contributing Author: Jay Verro, CCIM

With the ever-changing landscape in the office leasing market, it makes sense for landlords to have an ever evolving 5-year plan. Generally speaking, office leases in the Albany MSA market are 3 to 5-year lease terms, often with matching length renewal options.

With corporate downsizing, company mergers, telecommuting and smaller office size requirements, there is an incredible amount of space options available to tenants. Landlords who do not recognize that fact along with those who lack the creativity to get a lease to the finish line will sadly end up with vacancies for an extended period.

While challenging to accept, landlords need to be informed that not every asset appreciates in value. Continue reading Timing Your Exit Strategy as An Office Landlord

15 Commercial Real Estate Terms You Need to Know

Contributing Author: Levi Steier

As with any industry, Commercial Real Estate (CRE) vocabulary can sometimes be intimidating for the inexperienced. If you are starting a new business or considering investing in CRE, your interests would be best served by gaining some insider knowledge.

While you should always consult an experienced commercial real estate broker and retain their services, having a baseline understanding of some key terminology and concepts will improve your experience, make you more comfortable, and inform your decision making as you work toward a deal that is right for you and your needs.

  1. Expansion Rights – The legal right given by a landlord to a tenant to occupy additional leasable area in a building in the future.

Continue reading 15 Commercial Real Estate Terms You Need to Know

What is the real role of NNN Properties in the Real Estate Industry?

Contributing Author: Sean O’Shea

It’s kind of funny to be considered, nominally, as a ‘nationally-recognized net lease expert’ after all these years.

My first exposure to this asset class was back a few decades ago, when I was charged with developing a real estate portfolio for a mineral-asset based Family Office in Fort Worth whose patriarch and predecessors were legendary oil wildcatters who wanted diversification to their Bond Portfolio.

My own background had been as a junior partner in a regional development firm with appropriate higher risk returns; and as a Shareholder of a regional commercial brokerage, whose business model was based on acute data and cultivating relationships, as the foundations for our demonstrative success in tough East Coast markets. Continue reading What is the real role of NNN Properties in the Real Estate Industry?

2017-18 Indiana University Student Housing Research Report

Contributing Author: Sean Lyons

An in-depth analysis of the private student housing market at Indiana University conducted by Triad Real Estate Partners. Triad Real Estate Partners concentrates in private student housing and multi-family real estate brokerage. Triad Real Estate Partners’ research team compiles in-depth student housing market research reports on leading Universities in the United States.

 

Total Enrollment: Down 0.13%

Total enrollment at Indiana University’s picturesque Bloomington campus declined slightly in fall 2017, with the 43,157 students enrolled falling 56 short of the school-record set in 2016. Since the 2013 changes in enrollment allocation, Triad believes that the total “degree-seeking” enrolment figure to be the most accurate depiction of the number of students on campus. Continue reading 2017-18 Indiana University Student Housing Research Report

Choosing the Right Warehouse Space – One Size Does Not fit All

Contributing Author: Cory M. Tyksinski

The decision to lease, or buy the right warehouse space for your operation can be much more complex than just ceiling heights and dock doors. Often the process involves items that have little to do with the building itself. Most local municipalities and fire districts have the final say over who occupies a warehouse space and what is being stored in it or around it.

Would-be occupants of a warehouse need to assess their overall needs for both space and location.  During this assessment some important details are sometimes overlooked: Continue reading Choosing the Right Warehouse Space – One Size Does Not fit All

Late Cycle Behavior of NNN Investors

Contributing Author: Sean O’Shea

Here we find ourselves almost nine and one-half years from the impact of the Great Recession of 2008-09. While the market conditions that led up to the public acknowledgement of the financial crisis, were years in the making, many observers could have foreseen the Storm Warnings.  I remember having my NNN Advisory Team in tow at the annual ICSC Regional event in San Diego in the spring of 2008.  As we wandered through the various vendors’ booths and exhibits, we passed the Lehman Brothers booth.  Displayed were the usual swag items that populate these kinds of industry events.  Sitting on a display table, I spied a pile of very well designed and finely detailed ‘Baseball-type caps’ with LEHMAN BROTHERS, emblazoned on the crown of the caps.  I suggested to my Team, that they may wish to grab one of them, as a souvenir of a “Soon-to be Bygone Era,’”; since these guys at legendary Lehman are going down, based on the structure of interest only loans and other deals that we had tracked in the prior few go-go years.  They all looked at me, as if, I was ‘nuts’; but, nonetheless, each grabbed their souvenir hats.  Now, a keepsake of lending period that contributed, mightily, to the Financial Crisis as it unfolded. Continue reading Late Cycle Behavior of NNN Investors

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