Net Lease Trends 2019, Part 3: Lenders Compete for Deals
There continues to be a strong pipeline of both equity and debt flowing to the net lease sector. On the equity side, 42 percent of respondents see the availability of equity as unchanged compared to 12 months ago, while 20 percent said it had increased and 18 percent think it is less available. Views on debt were comparable with only 17 percent who consider debt to be less available than 12 months as compared to 49 percent who see access to debt as unchanged and 16 percent who think is it is more widely available. (Nearly 20 percent of respondents were unsure of the answer.)
Marcus & Millichap Capital continues to see healthy lender appetite for net lease assets among local, regional and national banks. “We’re building significant competition on any transaction that has decent credit with good lease term and good real estate,” says Richard Katzenstein, senior vice president and national director at Marcus & Millichap Capital. It is a different ball game in lining up financing for REITs, because they usually involve much larger assets or portfolios, but there is still significant interest for those bigger deals as well, he adds.
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