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.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.