The first half of 2022 has proved successful for CBRE‘s Mid-Atlantic Net Lease Property Group, which sold 35 properties across nine U.S. states, including many in New Jersey and greater Philadelphia, totaling nearly $100 million in total transaction volume.
Comprised of Matthew Gorman, Michael Shover, Thomas Finnegan and Robert Thompson, the team continued 2021’s momentum as it entered the first quarter of 2022 in terms of activity, closings and closing cap rates.
“The recent spike in interest rates hasn’t helped any product type; however, the net lease space is somewhat less susceptible as we transact with buyers who are typically heavy in cash and motivated by factors other than yield,” Gorman stated.
According to the team, the categories that have led throughout the COVID-affected retail market — dollar stores, drugstores, auto parts, fast-food restaurants — have continued to see strong demand. Dollar stores were the most frequently traded, while medical tenanted assets represented over 30% of the team’s total transaction volume in the first two quarters of the year.
“Net lease remains the main target for most 1031 Exchange buyers,” Shover said. “Interest rates have and will continue to fluctuate, but when an investor is looking for credit tenants with long-term passive leases, they typically land in our space, and we see that continuing for the foreseeable future.”
Gorman and Shover lead the CBRE Net-Lease Property Group Mid-Atlantic Team, specializing in the marketing and sale of single and multitenant net lease investment real estate. In its combined 40-plus-year history, the group has sold more than $2.7 billion in net lease properties nationwide.
Currently, the team has over 45 properties worth more than $200 million available or under contract.