TOP TAKEAWAYS: GlobeSt. Net Lease 2021
The following are Slatt Capital’s primary takeaways from the annual GlobeSt. Net Lease Fall 2021 Conference held at the Sheraton Grand Los Angeles in Los Angeles, California on October 28th, 2021.
- 2021 is projected to be a record year for net lease transaction volume, with the boom expected to continue at last into the first two quarters of 2022.
- Global supply chain disruptions are primarily the result of an unprecedented spike in consumer demand, rather than a decrease in supply.
- Cap rates for net-leased drug stores continue to compress to record lows, down 55-60 bps since Q3, 2020. This trend is projected to continue as inventory shrinks.
- Fitness centers, the black sheep of 2020, have begun to rebound, especially in suburban areas with minimal COVID restrictions in place.
- Domestic e-commerce spending increased over 30% in 2020, but still only accounts for 13.3% of US retail sales. Well located retail real estate continues to thrive in a post-COVID environment.
Attendance was down at this year’s GlobeSt. Net Lease Conference but plenty of decision-makers were present and booked with meetings. Look for next year’s event to be back to full size, if not larger, as excitement to interact in-person with company peers grows within the industry.