Net Lease’s Momentum Carries Into 2022
March 1, 2022 | Paul Bergeron | GlobeSt.com
Driven by unprecedented demand for single-tenant assets, 2021 marked a record for net lease transaction volume, which totaled $79.3 billion and was up 39 percent over 2019 levels.
Senior managing director Alex Sharrin, based in JLL’s Miami office and is part of the firm’s Capital Markets net lease team that focuses on private capital, anticipates that trend to continue, led by Sunbelt markets.
“Liquidity for net-lease assets has reached historic highs in recent months,” said Sharrin. “Rising acquisition targets and mandates from traditional net-lease investors, coupled with new private and institutional capital entering the space, is expected to support continued momentum looking ahead to 2022.”
An Abundance of Capital
The net lease sector’s momentum is indeed carrying into 2022, agrees Robert Poirier, associate director at Stan Johnson Company.
“With an abundance of capital from a wide range of investors chasing net lease opportunities, we expect this to continue at least through the third quarter of the year,” he tells GlobeSt.com. “The Sunbelt states have certainly benefited from the politics and policies surrounding the COVID pandemic as investors have aggressively focused their attention on assets located within that region being that mandates were less stringent than in some of the other areas of the country.”
