Continuing if steady rather than spectacular employment growth leading to increases in consumption and household formation, coupled with still-limited construction activity—all of these factors point to continued investor activity in net lease retail. That’s the case, says Marcus & Millichap, even amid concerns over tenant mergers and, in the case of quick-serve restaurants, minimum wages.
Furthermore, in its second-quarter report on the sector, Marcus & Millichap says in general it has been a lack of for-sale product, rather than a slowdown in demand, that has limited deal flow. An exception to that rule, though, is the dollar-store segment, for which the report cites a 23% year-over-year decline in transaction volume.. . . more