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Single Tenant Net Lease Report | Midyear 2021

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Shifting Capital Boosts Single-Tenant and Net Lease Opportunities

Single-tenant and net-lease properties continue to be hot with investors on the hunt for low-maintenance assets. Investors such as KKR, which is launching a $3 billion net lease platform, are piling capital into this space. With their reliable cash flow, frequent triple-net lease structure, and longer lease terms, STNLs smooth out volatility and create predictability in a portfolio.

Investors are redirecting single-tenant and net lease dollars into new spaces. For example, retail captured just 20% of all investment into the space in 2020 and through mid-year 2021. Compare that to 31% coming out of the last economic downturn. Retail has also seen relatively less capital as a share of total single-tenant and net lease investment since 2014. Drug store pricing is the strongest within retail, but investors are pivoting their capital elsewhere.

Industrial is benefiting from that pivot. From 2015-2019, industrial accounted for about 39% of investment activity in STNL. It topped 50% in 2020 and has captured 46% year-to-date. Office has broadly held market share at 34% this year, close to its 36% share from 2015-2019.

Private capital is selling these assets. Over the past two years, there has been a net outflow from this sector. Cross-border, institutional, and REITs have all been net buyers during that period. As the economy continues to heal, volume should see further gains. Investors are sitting on record amounts of capital, and with impending tax changes, private capital sources may continue to sell.


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Single Tenant Net Lease Report | Midyear 2021

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El Warner

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As Executive Vice President of Capital Markets, Retail for Colliers International, El specializes in the disposition of large institutional assets across the country. Successfully closing more than $2 billion in transactions, he utilizes his background as a Certified General Real Estate Appraiser and deep-seated knowledge of the industry to maximize value for his clients. He believes brokers must truly understand an asset and be passionate about creating the best marketing plan to create value and separate his team from others.

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Having sat on the ownership side of transactions for so many years, Michael has a unique perspective relative to the needs and expectations of investors in today’s dynamic market. He is skilled at negotiating complex transactions and is well respected for his integrity and tenacity.

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Immediately prior to joining Colliers, Mr. Petz led the growth of JLL’s overall capital markets business in New England. Prior to JLL, he served as director of capital markets activity at both Eastdil and CBRE, and ultimately built his capital markets foundation on the buy-side at AEW Capital Management for the first 15 years of his career.

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  • Blackstone Science Square, Cambridge | $80M

LAND

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In Anjee’s current role, as National Retail Director for the USA, she has developed strong relationships and strategic leadership to over 500 + retail professional nationally across 140 markets within Colliers for Investment Sales, Agency, Retailer Rep, and Retail Asset & Property Management.

Anjee Solanki brings 30 years of focused retail real estate experience to Colliers International.  She provides strategic retail advisory services to enhance value for her clients with her expertise in lifestyle, community, power center, neighborhood, mixed-use retail/residential, and resort retail. 

She has developed and manages strong working relationships with institutional and private clients such as State of Florida, State of Michigan, Heitman, Invesco, Grosvenor Americas, American Realty Advisors, TH Realty, PNC, and Zurich to name a few.

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Creative problem-solving is her specialty, and she becomes a key stakeholder with national and international retailers, such as JPMC, Opry City Stage/Ole Red and Tim Hortons, and many others. Her highly focused approach reduces the risk profile and provides clients with a thoughtful approach executing strategic multi-year planning initiatives. 

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Previously, Anjee served as Executive Vice President, Retail Services for Madison Marquette. She successfully assisted with repositioning community centers to lifestyle projects and identified opportunities to create value, resulting in higher returns for her clients. She also provided strategic analysis on complex redevelopment projects to address both the asset’s financial stabilization and/or the client’s exit strategy

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Anjee continues to be an insatiable collector of all things retail. She’s a student of culture living next door to future shoppers, whose fleeting trends constantly change the retail landscape … driving retailers, landlords and developers crazy! Read her Blog at:  https://knowledge-leader.colliers.com/author/anjee-solanki 

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Anjee is originally from Southern California and currently resides in San Francisco.  She is active in the Rincon Hill neighborhood residential improvement group, which participates in the public review of the highly anticipated Salesforce Transit Center in San Francisco.
 

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With a deep understanding of markets throughout the country, he provides a unique perspective on market dynamics across asset types and investment strategies, providing clients with tailored data and analytics to ultimately guide decision-making solutions.

As the Managing Director, Research & Client Services, Aaron oversees all aspects of Client Service offerings in Boston, including Research, Marketing, Graphics, Financial Analysis, Lease Administration, and Client Service Coordination. He ensures that our brokers are providing superior service and deliverables to existing and potential clients. At the same time, he assists brokers with pitch preparation and delivery, while continuing to push the Colliers brand via best-in-class research reports, thought leadership, and offers market insight as a monthly guest on Bloomberg Radio’s Baystate Business, and is a frequent resource for Bisnow, Banker & Tradesman, The Boston Globe, Boston Business Journal, The Real Reporter, and other publications.

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Before joining Colliers, he spent 11 years with Property & Portfolio Research (PPR), now CoStar Portfolio Strategy. There, he advised institutional clients on their commercial real estate investment strategies across property sectors and also spoke at industry events, quarterly CoStar webinars, and in front of client audiences. Aaron also led and directed a team of economists who monitored property markets across the United States. Near the end of his tenure, he helped establish a new business unit at CoStar, leading in the hiring, training, and coaching of a team of 50 market analysts. 

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