The death of the STNL

[John McKee]

The time has come to pivot from the Single Tenant Net Lease Investments.  The investors who bought these over the last 30 years are realizing the following:

Corporate Tenants Don’t last forever.  Think Drugs Stores, Banks,and sit down casual restaurants (These are your parents stores)

Corner lots and out parcels all over America are losing value and Landlords can’t re lease it for the same rent.  Increased cap rates are devaluing these once passive investments and Landlords are struggling to hold their value, especially if they have to provide additional TI.  Buildings can sit empty for 1-2 years as well and are hard to reconfigure  

So what’s one to do?

redevelop your property into a multi tenant unit if possible

Throw in a lower paying tenant and wait

Investors?…Be the developer, not the owner of these assets and diversify!