While triple net lease (NNN) properties still continue to break prerecession prices, investors’ appetites for NNN properties continue drive up prices and compress cap rates to new historical all-time lows.
Recently Closed Dollar Tree at 5.25% Cap Rate
Business Is Good
With cap rates being compressed by higher demand than the market can supply, net leased properties such as JPMorgan Chase, Dollar Tree, McDonald’s, Walgreens and many alike are experiencing new all-time low cap rates in the low 4% or 5% range, according to Nathan Diones, Broker and president of Regioncy Real Estate, a commercial real estate brokerage, based in Yucaipa, CA.
With the looming threat of interest rates on the rise, investors have been gobbling up all types of net leased products consisting of retail, office and industrial. If the Feds decide to raise interest rates prior to the end of 2015, we could see a pullback on sales until the market adjusts to the new rates.
Regioncy offers both buyer & seller representation for Net Leased Property (NNN).
Commercial Real Estate Owners Using Recycled Water
As the drought within California continues, the landscape is changing back to what it once was without lush palm trees and over watered grass. Savvy commercial real estate owners are now finding ways to cut their own water use and increase their net operating income (NOI). In addition to the many different types of water saving devices for both residential and commercial property owners, many investors are shutting off the sprinklers and turning to a water delivery service, more so a recycled water delivery service! Such recycled water delivery services are becoming more popular within California. The cost effective delivery services can be set up on a regularly scheduled service and merely show up to water each property as needed. The recycled water is free within certain areas so property owners simply pay for a service fee. These service fees to each recycled water delivery company are lower than the cost of keeping the sprinklers on every other day and when coupled with the fact that less water promotes less vegetative growth, the costs savings are even greater due to the fact that the landscape doesn’t need the attention it normally would. The benefits of using recycled water on real estate investments or even on our own homes is rapidly growing and should continue to do so even when California’s snow pack returns to normal levels. Commercial Real Estate Recycled Water
Commercial Real Estate Recycled Water Uses
Commercial Real Estate using a Recycled Water Delivery Service.
Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.Contact us here.
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