Outlook for 2021, however, is more uncertain.
While many sectors of commercial real estate continued to struggle in the fourth quarter of 2020, investors’ preference for net lease assets remained strong. Investment sales activity in the sector rose to the highest level in four quarters and average cap rates reached record lows, according to the most recent report from the Boulder Group, a boutique real estate investment services firm specializing in single-tenant net lease properties. At the end of the third quarter, the net lease share of all investment sales activity in the U.S. commercial real estate market reached 18.4 percent, compared to its five-year average of 11.8 percent, reported real estate services firm CBRE.
To say 2020 has been a tough year for retailers would be an understatement.
In June, it was projected that 25,000 would shutter this year. Some had been hit hard by the retail apocalypse, while others were decimated solely by the coronavirus.
But amid the ashes, many retailers have announced expansions or are going full speed ahead with previous plans, according to a report by Stan Johnson Co.
“You’re surprised to see people are expanding. Then, when you peel the onion back, it starts to make a little more sense as to what their long-term strategy is,” said Ryan Butler, managing director and partner at Stan Johnson.