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?