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SRS NNLG: Investors Flight to Safety in Second Half of 2022
SRS Real Estate Partners’ National Net Lease Group (NNLG) sees a change in investment strategy for the rest of 2022, as the Newport Beach firm predicts that inflation, a volatile stock market and rising interest rates will produce a drive to income-producing safe haven assets.
SRS NNLG Managing Principal Matthew Mousavi said, “While there’s still a great deal of capital chasing well-located class A assets, this does not mean we’re going to see the same record level of volume and pricing that we saw in 2021. The debt markets and various macro-economic indicators continue to shift dramatically.”
Class B and C properties are at risk, according to SRS, particularly those with problematic tenants, rolling leases and vacancy. Meanwhile, 1031 placement remains strong, especially for assets under $20 million and investors are seeking tenants and markets that can withstand a downturn, driving them to necessity-based durable retailers.
- ◦Economy
