2019 NNN Forecast

Contributing Author: Sean O’Shea

As many much smarter ‘guys’ than me (and smarter women, too) are reviewing the last year; and struggling with Forecasts for 2019, at this time, there has been a lot of discussion about Fed Policy on rates and their impact.

Bloomberg had a recent interview with the legendary hedge fund and financial advisor, Stanley Druckenmiller, who was reviewing the last ten year era; and he was critical, then, (2009); and now, (2019) regarding rates and the liquidity implications of the unwinding of QE policies.

We think some useful language, is to characterize ‘asset bubbles’ or the asset inflation that these policies may have created as a real thing. Actually, many are referring to this period as the ‘Bernanke-Yellen Asset Inflation’ period.  

Continue reading 2019 NNN Forecast

How do NNN assets address your concerns?

Contributing Author: Sean O’Shea

Black Swans…Fed rate raise…Recession Fears…4% GDP Hopes…Impact of Federal Deficits…Credible realty…

We often state, in an initial conversation with a prospective Client, while these Net leased assets (NNN) are now viewed as a convenient solution, which limits the management and operations responsibility for a Landlord/Investor, Not all net NNN leased properties are the same.”

In the last ten years, these NNN assets have become ‘commoditized’.  Many seasoned investors, particularly 1031 Exchange Buyers, who have a tight 45 day timeline in which to make a multi-million dollar decision to defer their substantial capital gain and secure a safe, predictable income stream imagine that you go to a Commercial Real Estate Listing Platform, like Crexi, Brevitas, Loopnet, or Leavitt Digital (LDCRE) to identify and secure their trade replacement solutions.  There has, also, been a proliferation of nominal “Investment Sales Broker”, as well. Continue reading How do NNN assets address your concerns?

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?

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