Economic Talking Points First Quarter | 2018

Net lease investment remain hot in 2018

National Real Estate Investor Magazine released a report that showed strong sentiment for net leased investments in 2018. Approximately 35% of survey respondent said supply of deals was in balance, 27% thought the market was undersupplied, and only 15% thought the market was oversupplied.

It is likely for the prices of net lease deals to remain stable or even grow in the face of broad market volatility, as income stability of investments offered becomes a more desired feature.

Commercial property prices up 0.5% in the first quarter according to Real Capital Analytics

Real Capital Analytics national property price index rose by 0.5% in February or 8.1 year over year. This reflects a steady trend of small increases over the past year. All sectors showed gains, except CBD-Office which was down -0.8%. Industrial was up the most at 1.3% followed by Apartments at 0.7% sales activity was down slightly, largely attributed to interest rate fears.