Low Bond Yields and Elevated Inflation Risk Invigorate Buyer Interest in Net-Leased Assets
- Demand for single-tenant properties to last beyond health crisis. Most of the traditional users of net-leased retail space weathered the pandemic better than many sectors of the real estate market.
- Retail sales well above pre-pandemic levels. Single-tenant retailers continue to benefit from the influx of stimulus capital pumped into the economy in the wake of the health crisis.
- Labor shortage hamstrings some sectors. A few states with stringent lockdowns may see restaurant closures near 33 percent, while others may only experience 10 percent losses.
- Reopening to support single-tenant retailers. As workers return to offices, more visits to single-tenant facilities will aid in retail sales at stores near offices and other establishments that rely on commuters.
*Forecast | Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics, Capital Economics; Freddie Mac; Moody’s Analytics;
Mortgage Bankers Association; National Association of Realtors; National Association of Home Builders; BLS; Federal Reserve; RealPage, Inc.; U.S. Census Bureau; Wells Fargo
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