Net lease professionals are optimistic about this Year. Net lease sales have steadily increased this year over last and many expect this trend to continue into next year. According to Real Capital Analytics (RCA). Furthermore,new product is slowly beginning to enter the market, opening up more investment opportunities we all hope to see in 2012.

1. CALKAIN RESEARCH
SINGLE TENANT NET LEASE SALES
S T RO N G I N 4 T H Q UA RT E R
As the year draws to a close, net lease professionals are optimistic about the economic new year. Net lease sales
have steadily increased this year over last and many expect this trend to continue into next year. According to
Real Capital Analytics (RCA) single tenant sales volume has increased 47% in the 12 months through 3rd quarter
2011 and 65% in the 3rd quarter alone. This matches what net lease professionals are witnessing on the street –
a pointed increase in net lease sales at year’s end.
Actual Change vs. Prior Actual Change vs. Prior
Volume (mil) Proir 12 months $5,218.00 47%
(thru Q3 ‘11)
Q3 ‘11 1789.50 65%
It is also interesting to note that according to the Bureau of Economic Analysis (BEA) consumer spending has
also been increasing over last year – increasing by 2.1% in Q1, 0.7% in Q2 and 2.3% in Q3. These signs point to a
healthier economy and net lease market.
By in large, Net Lease investors have been specifically seeking top credit tenants in primary markets. Pharma-
cies, Banks, and certain QSR such as McDonald’s (NYSE – MCD) continue to trade at aggressive cap rates. Inves-
tors seeking higher returns are turning to non public companies proven to be strong operators. Furthermore,
new product is slowly beginning to enter the market - opening up more investment opportunities we all hope
to see in 2012.
w w w. c a l k a i n . c o m