Today, net-leased property occupied by a single tenant which is not a national credit company is attracting a national investor audience primarily because of:
- The pervasive use of the Internet
- Attractive investment yields (cap. rates) compared to core real estate and other security investments
Industrial properties valued under $20 million and as low as $1 million are no longer a “local” deal.
Investors view the sale-leaseback as more attractive than a “junk bond” of equivalent yield because they have real estate collateral supporting the investment which will unlikely lose all of its value.