Single Tenant Net Lease Investment Overvie · Net Lease Investment Services Single Tenant Net Lease Investment Overview ... continued weakness from Sears/Kmart will result in more
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Net Lease Investment Services
Single Tenant
Net Lease
Investment Overview
Fall 2012
Garrick BrownDirector of Research
San Francisco
916.329.1558
gbrown@ctbt.com
For more information regarding
this report, contact:
2Cassidy Turley Net Lease Investment Services
Big Picture UpdateAfter a relatively robust fi rst half of the year, investment sales
activity has slowed for nearly every single-tenant property type that
we track. But this decline in activity has been due to a shortage of
available product in the marketplace and is not refl ective of investor
demand, which continues to be on the increase. By the close of
the third quarter, it was apparent that deal velocity had simply
slowed across the board and in virtually every region of the United
States. Though there is a natural lag time involved in gathering
deals, our preliminary numbers and forecast
fi nal statistics for the third quarter of 2012
indicate slowing deal velocity all around. On
the drug store front, we anticipate a total of
45 closed deals nationally, indicating a 27%
decrease from the 62 sales that closed in
the second quarter of this year. Fast food will
close the quarter with roughly 130 deals—a
26% drop from the 175 transactions that
were inked last quarter. Approximately 135
automotive retail properties moved in the
third quarter, down 11% from second quarter
totals (152 deals). Single-tenant industrial
investment properties accounted for 275
deals nationally during the third quarter—a
36% decrease from the 429 sales that posted
last quarter. Big box retail also saw a decline
in sales activity. Junior boxes accounted for
roughly 30 deals this quarter, compared to
45 during the second quarter of 2012. Mid-
box sales activity dropped from 33 deals last quarter to about 25
sales this quarter. Only mega-boxes saw an increase in activity with
a likely twelve deals closing in the third quarter, up from nine.
The primary reason behind this slowdown is that the market
continues to struggle with a lack of properties available for sale.
For example, we are currently tracking 302 drug store properties
available for sale throughout the United States. At the beginning
of this year, we were tracking 389 available properties. Drug store
availability has fallen by 22% since our Spring 2012 report. Fast
food investment availability has fallen by 12%--we are currently
aware of 966 fast food properties available nationally compared
to 1,103 in January. Automotive property availability is down by
11%. The 2,275 available automotive investment properties we are
currently tracking compare to 2,568 offerings on the market nine
months ago. The only property type to not show a signifi cant decline
in availability have been single-tenant industrial. We are currently
tracking 1,572 offerings (just industrial buildings of 50,000 square
feet or more, not including fl ex or R&D product), compared to 1,585
total properties on the market at the start of 2012.
The fact is that net-leased investments remain at the top of most
investor wish lists, particularly when it comes to private investors.
This is not just because of the relative simplicity of being the
landlord of a single-tenant triple net leased investment, but
also because of the security offered by some of the top users of
these properties.
In the meantime, occupancy is what is at the heart of all net
leased investment trends. That being said, the most sought after
properties are those with long-term leases in place to stellar credit
tenants. McDonald’s leads the pack thanks to their exceptional
credit, their strong sense of site selection (McDonald’s locations
rarely fail) and the fact that their leases tend to be very long. Drug
stores follow, though in the national three-
horse race between Walgreen’s, CVS and
Rite Aid, only two remain in high demand.
All work with long-term leases, but while
CVS (A2) and Walgreen’s (B1) and CVS
have strong credit, Rite Aid (E1) continues
to operate with an excessive debt-load and
strong doubts as to their long-term ability to
service that debt. Last year Rite Aid shuttered
52 locations (current store count of 4,652)
while Walgreen’s added 172 stores (for a total
of 8,343) and CVS added 128 new units (for
a total count of 7,457 locations). Because of
this, it should come as little surprise that CVS
and Walgreen’s accounted for roughly 90% of
all the trades inked during the third quarter,
typically moving with cap rates of 6.0% or
less in place. Meanwhile, the Rite Aid stores
that have sold have generally been with cap
rates of 8.0% or more in place.
But aside from the typical dominance of a few fast food and drug
store chains, we are also seeing rising demand for both automotive
net leased properties and single-tenant industrial investment as
well. Both of these property types are seeing increased investor
demand due to stronger fundamentals and better rates of return.
Despite the ongoing economic challenges of a slow recovery and
global problems (the ongoing Eurozone recession, slowing world
economic growth, etc.), the investment outlook in the United States
is generally more positive with most of the chief near-term threats
to U.S. economic growth viewed primarily as policy issues and
not underlying organic weaknesses. Meanwhile, the Fed’s recent
act to provide more stimulus was generally viewed as a positive
development within the investment community. All of this is lending
itself to investors feeling more comfortable with seeking out higher
levels of risk/reward than they had over the last few years as they
retrenched in the aftermath of the downturn. As a result, cap rates
will continue to compress for stabilized fast food, automotive and
industrial properties but can’t fall much farther for drug stores.
Meanwhile, look for pricing to generally increase for most net lease
investment types in the majority of major U.S. markets… with just
one exception.
The decline in investment sales activity that we have seen over
the last few months is not because demand is down.
It’s actually up. The problem has been too
few net leased opportunities for sale in
the marketplace.
Single Tenant Net Lease
Investment Overview Fall 2012
www.cassidyturley.com 3
The New Big Box is SmallThe one place where we are seeing shrinking overall values for
net leased investment is in the big box retail arena, however,
not all boxes are created the same. The fact is that space users
are scaling back their footprints and we continue to see more
closures than openings when it comes to mid-box and mega-box
space. However, demand for junior box space is actually up. We
track active retailer growth plans throughout the United States.
The pool of retail space requirements we are tracking in the 20,000
to 40,000 square foot range is currently about fi fteen times
the size of what we are aware of for spaces of 40,000 square feet
or greater.
For mid-boxes, 2013 will be a challenging year. For the past couple
of years, we have seen an increase in the numbers of new players
getting into the grocery business, most of them non-unionized.
Target has added full grocery sections to nearly every one of their
locations in the United States. Walmart is launching two small
format concepts (the 15,000 square foot Express and 30,000
square foot Neighborhood markets) while their British nemesis,
Tesco, has been expanding their Fresh and Easy concept. A
new slew of niche grocers have also been on the move, ranging
from luxury (Whole Foods) to discount (Grocery Outlet), ethnic
(Northgate Gonzalez) to organic (Sprouts Farmers Market). Drug,
dollar and convenience stores are all upping their food offerings.
This is the year that something will give and that something will
largely be mid-priced unionized small-market or regional players.
The space that will be returned to the
marketplace will largely be mid-box
space in the 50,000 to 70,000 square
foot range. Meanwhile, mega-boxes will
also continue to see more space being
put on the market than being taken
down over the next year, though they
will likely fare better than mid-boxes.
So what will this mean to the net leased
market? For mid-boxes, we had seen
some nominal pricing gains for Class
A product over the past year, providing
it had long-term leases in place to
solid credit tenants. But this had only
been in some of the strongest primary
marketplaces. Otherwise, pricing had
generally been fl at for A product in most
secondary and tertiary markets. Pricing
for stabilized Class B product has also generally been fl at in most
markets, while Class C product (even those with tenancy in place)
has generally seen fl at to negative movement in pricing. With
fundamentals for this property type likely to erode in the coming
year and with more tenants shrinking their footprints, we anticipate
downward pressure on pricing for most mid-box properties in the
coming year. The strongest Class A properties with superior tenants
locked in will likely escape with fl at growth. Meanwhile, the best
option for many landlords of recently vacated properties may be to
demise their mid-boxes to attract smaller, junior box users.
Pricing trends in general for mega-boxes have been fl at to negative
over the past year. We have seen some minimal price gains for
Class A product, but only for elite properties in the best performing
primary marketplaces providing they had sterling credit tenants
locked into long-term leases. Otherwise, pricing for Class A mega-
boxes has been fl at in most secondary and tertiary markets.
Pricing has been fl at to slightly negative for occupied Class B
properties with projects in primary markets
faring best and those in tertiary locations
faring worst. Meanwhile, Class C mega-box
product, even if tenants are in place, has
typically seen price erosion over the past
year. Unfortunately for sellers, we don’t see
a lot of relief coming soon. The slow return
of housing might mean that furniture store
users may be active and there will be a slow
return of the DIY crowd, though Lowe’s and
Home Depot tend to only look at Class A or
B+ second generation space if considering
anything other than a build-to-suit. But
continued weakness from Sears/Kmart will
result in more closures from that chain that
will impact the mega-box market, if not a
full-scale bankruptcy and liquidation in
2013. In general, pricing will fall. Only Class
A+ properties that are fully leased to bulletproof tenants in the top
high-density primary markets might escape this trend.
But there is some good news. Junior box fundamentals are strong
and we see nothing changing this. Space users are shrinking their
footprints, but this is mostly larger users moving downward a notch.
Junior box fundamentals should actually improve over the course of
2013. Decreasing vacancy and increased rental rate growth (with
perhaps the exception of Class C properties) will help to drive both
increased investor demand for net leased junior boxes, but sale
pricing increases and cap rate compression in the coming year.
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5%
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7%
8%
9%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Single Tenant Retail Properties Average Cap Rate & Sale Price (PSF) Trend
Source: Cassidy Turley Northern California Research, Costar, Real Capital Analytics
So what will this mean to the net leased market? For
mid-boxes, we had seen some nominal pricing gains for Class A product over the past year, providing it had
long-term leases in place to solid credit tenants.
Single Tenant Net Lease
Investment Overview Fall 2012
4Cassidy Turley Net Lease Investment Services www.cassidyturley.com
Drug Store Retail Trends
• Our preliminary data for the third quarter of 2012 indicates that sales activity for drug
stores fell slightly. We are currently aware of 31 transactions that have taken place
over the past three months. However, as there is a natural lag time involved in gathering
deals and because these numbers were culled in mid-September, we expect the
fi nal tally for third quarter transactions to likely be about 45 total deals. This compares
to 62 deals that closed during the second quarter of 2012 and 64 transactions in
the fi rst.
• Preliminary deal volume for the third quarter currently stands at just under $146
million, but we expect the fi nal tally to approach $200 million. This compares to a total
deal volume of just under $314 million posted during the second quarter and $291.7
million in sales transacted during the fi rst quarter of 2012.
• The average price on drug stores that closed during the third quarter was $366 per
square foot. This compares to an average of $386 per square foot during the second
quarter and $347 per square foot during the fi rst quarter of 2012. One year ago, it
stood at $330 per square foot.
• The average capitalization rate on drug store deals during the third quarter was 6.8%.
This compares to 7.0% in the second quarter and 7.1% during the fi rst quarter. One
year ago, this metric stood at 7.3%. It has consistently moved downward since the
fourth quarter of 2009 when it peaked at 8.1%.
• Demand from private investors has remained strong---triple net investments, drug
stores in particular, remain among their favorite assets. Of the deals that we have
tracked through the fi rst three quarters of 2012, private investors account for 81%
of all activity. Institutional buyers accounted for 13% of all purchases, while REITs,
foreign investors and other types accounted for the remaining 6%. Institutional demand
continues to slowly rise. Institutional buyers accounted for 9% of all transactions that
closed in 2011 and just 5% of the deals inked in 2010. Private investment is also up;
accounting for 75% of all deals last year and 81% of the purchases so far this year.
REITs, on the other hand, accounted for 14% of the transactions recorded in 2011 but
less than 3% so far this year.
Top Drug Store Deals
Walgreens
Nyack, NY
Price: $10,500,000
Cap Rate: 6.3%
Walgreens
Sunnyvale, CA
Price: $10,050,000
Cap Rate: 5.6%
CVS
Portland, TX
Price: $3,200,000
Cap Rate: 6.7%
Walgreens
Austin, TX
Price: $4,850,000
Cap Rate: 7.4%
$100
$150
$200
$250
$300
$350
$400
$450
$500
5%
6%
7%
8%
9%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Single Tenant Drug Store PropertiesAverage Cap Rate & Sale Price (PSF) Trend
Source: Cassidy Turley Northern California Research, Costar, Real Capital Analytics
5
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Walgreens 1201 Main Street, Peeksill, NY 11,062 05/2012 $11.00 M $997 6.5%
Walgreens 17239 Five Points Sq, Lewes, DE 14,820 05/2012 $9.35 M $631 6.3%
Walgreens 1366 Broadway, Brooklyn, NY 9,532 06/2012 $7.55 M $792 6.1%
Rite Aid 4113 William Penn Hwy, Monroeville, PA 12,738 03/2012 $4.95 M $388 8.9%
CVS 200 E Plank Rd, Altoona, PA 8,000 07/2012 $4.22 M $527 7.4%
CVS 65 Quaker Ave, Cornwall, NY 12,680 06/2012 $4.11 M $324 6.9%
Single Tenant Drug Store Market US Northeast Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
CVS 1751 Columbia Rd, Washington, DC 12,564 08/2012 $14.50 M $1,154 6.0%
Walgreens 1835 W Sand Lake Rd, Orlando, FL 14,490 02/2012 $10.30 M $711 6.4%
Walgreens 2145 Union Ave, Memphis, TN 27,800 05/2012 $9.50 M $342 6.5%
Walgreens 1510 Sardis Rd N, Charlotte, NC 14,490 08/2012 $5.44 M $375 6.9%
CVS 10222 East Fwy, Houston, TX 13,013 07/2012 $4.94 M $379 6.5%
CVS 3190 Zelda Rd, Montgomery, AL 11,970 09/2012 $4.22 M $352 6.4%
Single Tenant Drug Store Market US Southern Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Walgreens 4205 Egan Dr, Savage, MN 14,820 05/2012 $7.40 M $499 6.4%
Walgreens 2011 E. 95th St, Chicago, IL 15,120 06/2012 $5.47 M $362 7.5%
Walgreens 220 S Century Blvd, Rantoul, IL 11,203 04/2012 $4.35 M $388 6.8%
Walgreens 1982 Eight Mile Rd, Cincinnati, OH 14,560 06/2012 $3.97 M $273 6.7%
CVS 3 N Cleveland Ave, Mogadore, OH 10,224 05/2012 $2.60 M $254 6.9%
CVS 1001 E Main St, Dayton OH 10,772 02/2012 $1.95 M $182 7.2%
Single Tenant Drug Store Market US Midwest Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Walgreens 3025 S. Las Vegas Blvd, Las Vegas, NV 16,016 05/2012 $27.86 M $1,740 7.0%
Walgreens 880 Sutton Rd, Grass Valley, CA 14,468 08/2012 $12.23 M $845 6.5%
Walgreens 2870 28th St, Boulder, CO 14,820 04/2012 $7.39 M $499 6.3%
CVS 800 Palm Ave, Imperial Beach, CA 14,884 08/2012 $7.00 M $470 5.6%
Rite Aid 3130 Simpson Ave, Bremerton, OR 17,339 03/2012 $6.56 M $379 8.5%
Walgreens 1654 N Pebble Creek Pky, Goodyear, AZ 14,820 04/2012 $5.00 M $337 5.3%
Single Tenant Drug Store Market US West Region Select Major Sale Transactions
Single Tenant Net Lease
Investment Overview Fall 2012
6Cassidy Turley Net Lease Investment Services www.cassidyturley.com
Fast Food Retail Trends
• Our preliminary data for the third quarter of 2012 indicates that sales activity for fast
food properties fell slightly. We are currently aware of 105 transactions that have
taken place over the past three months. Our fi nal tally will likely exceed 130 deals.
This compares to 175 deals that closed during the second quarter of 2012 and 140
transactions in the fi rst.
• Dal volume for the third quarter currently stands at just over $95.3 million, but we
expect our fi nal tally to approach $120 million. This compares to a total deal volume
of just under $173 million posted during the second quarter and over $122 million
during the fi rst quarter.
• The average price on the fast food deals we have tracked during the third quarter was
$336 per square foot. This compares to an average of $366 per square foot during the
second quarter and $324 per square foot during the fi rst quarter of 2012.
• The average capitalization rate during the third quarter was 7.1%, the same level
posted during the second quarter. This is down from 7.5% in the fi rst quarter, but has
moved little over the past year. The lowest cap rates this year have dipped as low as
the high 4.0% range. We have tracked McDonald’s, Taco Bell, Chick-fi l-A, KFC and
Starbucks deals with sub-6% caps. All were in superior urban or suburban locations
with long-term leases in place, most of which to corporate ownership, though there
were some strong local franchise operations also represented. The highest cap rates
we have seen have been as high as 11.0%. We have tracked Whataburger, Sonic
Drive-In, Steak n Shake, Arby’s and KFC deals that have traded with caps above 9.0%.
Note that nearly every location that traded with a higher capitalization rate refl ected
franchise ownership.
$200
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$600
4%
5%
6%
7%
8%
9%
10%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Single Tenant Fast Food PropertiesAverage Cap Rate & Sale Price (PSF) Trend
Source: Cassidy Turley Northern California Research, Costar, Real Capital Analytics
Top Fast Food Deals
Wendy’s
Castro Valley, CA
Price: $1,567,000
Cap Rate: 5.2%
McDonalds
West Sacramento, CA
Price: $1,895,000
Cap Rate: 4.8%
KFC
Wilkesboro, NC
Price: $1,650,000
Cap Rate: 7.5%
Panda Express
Crestwood, IL
Price: $1,185,000
Cap Rate: 6.5%
7
Single Tenant Fast Food Market US Northeast Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Wendy's 388 Highway 35, Keyport, NJ 2,581 07/2012 $1.71 M $663 8.4%
Starbucks 2441 Watt St, Schenectady, NY 1,650 08/2012 $1.11 M $673 7.6%
White Castle 530 Southern Blvd, Bronx, NY 1,575 03/2012 $2.00 M $1,270 -
Single Tenant Fast Food Market US Southern Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Burger King 815 S Congress Ave, West Palm Beach, FL 3,039 05/2012 $2.39 M $786 6.0%
Jack in the Box 607 FM 1960 Rd E, Houston, TX 2,495 06/2012 $2.13 M $851 5.4%
Wendy's 5555 El Dorado Pky, Frisco Trails, TX 3,000 09/2012 $1.75 M $584 5.3%
Del Taco 8333 Preston Rd, Frisco, TX 2,373 06/2012 $1.65 M $695 6.7%
KFC 1010 Independence Blvd, Virginia Beach, VA 2,782 08/2012 $1.54 M $552 6.3%
Hardee's 255 S Lowry St, Smyrna, TN 3,371 06/2012 $1.49 M $441 7.5%
McDonald's 1878 W Main St, Locust, NC 4,397 08/2012 $1.38 M $313 4.7%
Single Tenant Fast Food Market US Midwest Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Chipotle 175 Senate Dr, Monroe, OH 3,250 06/2012 $1.68 M $515 6.0%
Taco Bell 1717 Morse Rd, Columbus OH 2,378 04/2012 $1.35 M $568 7.5%
Burger King 10706 Emmet St, Omaha, NE 2,936 06/2012 $1.34 M $454 6.7%
Burger King 244 Grand Ave, Saint Paul, MN 2,275 07/2012 $1.21 M $532 7.5%
Panda Express 13581 S. Cicero Ave, Crestwood, IL 2,488 07/2012 $1.19 M $476 6.5%
Panda Express 380 E Rollins Rd, Round Lake Beach, IL 2,400 04/2012 $1.10 M $458 6.6%
KFC 1407 John F Kennedy Dr, Bellevue, NE 2,138 06/2012 $1.07 M $501 7.0%
Single Tenant Fast Food Market US West Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Jack in the Box 34701 Ardenwood Blvd, Fremont, CA 2,356 03/2012 $2.14 M $906 5.3%
Carl's Jr. 14665 Sunnyside Rd, Happy Valley, OR 2,792 05/2012 $1.98 M $710 6.6%
Del Taco 24023 E Prospect Ave, Aurora, CO 2,314 06/2012 $1.83 M $789 8.2%
Burger King 1857 E Main St, Grass Valley, CA 2,675 09/2012 $1.33 M $495 6.0%
KFC 3518 W Victory Blvd, Burbank, CA 1,504 07/2012 $1.30 M $864 5.9%
Taco Bell 3521 Cannon Rd, Oceanside, CA 2,000 06/2012 $1.22 m $607 4.8%
Arby's 2130 S Power Rd, Higley, AZ 2,600 09/2012 $1.20 M $461 6.1%
McDonalds 1265 W 9000 S, South Jordan, UT 3,296 05/2012 $.86 M $260 5.4%
Single Tenant Net Lease
Investment Overview Fall 2012
8Cassidy Turley Net Lease Investment Services www.cassidyturley.com
Single-Tenant Automotive Retail Trends
• Our preliminary data for the third quarter of 2012 indicates that sales activity for
single-tenant automotive retail properties fell slightly. We are currently aware of 109
transactions that have taken place over the past three months but expect our fi nal tally
to reach at least 135 deals. This compares to 152 deals that closed during the second
quarter of 2012 and 169 transactions in the fi rst.
• Deal volume for the third quarter currently stands at just over $61.3 million, but will
likely close out the quarter at $80 million. This compares to a total deal volume of $97.1
million posted during the second quarter and over $106.3 million in sales transacted
during the fi rst quarter of 2012.
• The average price on the single-tenant automotive deals that closed during the third
quarter was $117 per square foot. This compares to an average of $119 per square foot
during the second quarter and $108 per square foot during the fi rst quarter of 2012.
In general, we are seeing gradual price increases across the board. Urban properties
with long-term leases in place to solid national credit tenants are seeing the strongest
increases.
• The average capitalization rate on deals that closed during the third quarter was 6.6%.
Though we don’t expect much movement in this statistic as late closing deal data comes
in, we would not be surprised to see this metric tick up a few basis points. We anticipate
that the fi nal revised average cap rate for the third quarter will likely come in at around
6.8% or 6.9%. This compares to an average rate of 8.1% during the second quarter and
7.8% during the fi rst quarter.
• This quarter’s average capitalization rate is the lowest that the market has posted since
the third quarter of 2008 and refl ects the fact that there are fewer distress sales taking
place. The retailers in this sector have been strong as a whole and most of the properties
that were in distress in the immediate aftermath of the recession have already traded
hands. The majority of properties that were troubled were either aging, functionally
obsolete buildings or those in poor locations. Unlike the big box marketplace, few of the
distress issues within the automotive sector came from retailer failures or bankruptcies
a la Circuit City or Linens N Things.
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Single Tenant Automotive PropertiesAverage Cap Rate & Sale Price (PSF) Trend
Source: Cassidy Turley Northern California Research, Costar, Real Capital Analytics
Top Automotive Deals
Firestone
Perry Hall, MD
Sale Price: $3,888,000
Cap Rate: 7.2%
Firestone
Fulton, MD
Sale Price: $3,220,000
Cap Rate: 7.2%
Just Tires
Apex, NC
Sale Price: $2,880,000
Cap Rate: 7.5%
Firestone
Headley, MA
Price: $3,745,100
Cap Rate: 6.9%
9
Single Tenant Automotive Market US Northeast Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Bridgestone / Firestone 9653 Belair Rd, Perry Hall, MD 8,500 04/2012 $3.89 M $457 7.2%
Bridgestone / Firestone 11821 W Market Pl, Fulton, MD 7,610 03/2012 $3.22 M $423 7.2%
Advance Auto Parts 443 New Park Rd, West Hartford, CT 6,124 02/2012 $2.03 M $330 7.5%
Advance Auto Parts 2801 Williamsburg Rd, Richmond, VA 8,075 03/2012 $1.49 M $184 7.6%
Advance Auto Parts 75 Robinson St, Binghamton, NY 7,000 01/2012 $.96 M $138 8.3%
Single Tenant Automotive Market US Southern Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Bridgestone / Firestone 9653 Bel Air Rd, Perry Hall, MD 8,500 04/2012 $3.89 M $457 7.2%
Just Tires 1210 Beaver Creek Commons, Apex, NC 7,100 05/2012 $2.88 M $406 7.5%
Christian Brothers Automotive 23650 Venezia Dr, Land O Lakes, FL 4,921 09/2012 $2.35 M $476 7.6%
National Tire & Battery 2530 Franklin Pike, Nashville, TN 9,600 06/2012 $2.29 M $233 6.5%
Christian Brothers Automotive 742 Garth Brooks Drive, Yukon, OK 4,921 02/2012 $1.66 M $336 8.0%
Advance Auto Parts 696 US Highway 441, Clayton, GA 7,000 06/2012 $1.43 M $204 7.6%
Single Tenant Automotive Market US Midwest Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Bridgestone / Firestone 4850 NW Urbandale Dr, Urbandale, IA 8,736 03/2012 $2.86 M $328 7.2%
National Tire & Battery 5930 Mayfi eld Rd, Mayfi eld Heights, OH 14,519 09/2012 $2.85 M $196 7.0%
Tires Plus 1017 Spring City Dr, Waukesha, WI 8,256 04/2012 $2.54 M $308 7.2%
Tires Plus Appleton Ave, Germantown, WI 7,500 06/2012 $2.00 M $267 8.1%
Advance Auto Parts 34640 Center Ridge Rd, North Ridgeville, OH 6,000 03/2012 $1.67 M $279 8.3%
O'Reilly Auto Parts 415 E North St, Rapid City, SD 7,014 08/2012 $1.40 M $199 7.4%
Single Tenant Automotive Market US West Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Big O Tires 6702 E McKellips Rd, Mesa, AZ 6,320 03/2012 $2.45 M $388 6.8%
O'Reilly Auto Parts 2026 Fruitvale Ave, Oakland, CA 8,000 06/2012 $2.25 M $281 6.4%
Big O Tires 1975 W Happy Valley Dr, Phoenix, AZ 6,000 07/2012 $2.02 M $337 7.3%
Tire Works 8825 W Flamingo Rd, Las Vegas, NV 7,600 05/2012 $1.40 M $184 7.7%
Valvoline 24281 Moultan Pky, Laguna Woods, CA 1,500 09/2012 $1.36 M $910 6.0%
AC Delco 4706 NE Minnehaha St, Vancouver, WA 7,680 02/2012 $.93 M $121 8.0%
10Cassidy Turley Net Lease Investment Services
Big Box Retail Trends—Junior Box Properties
(20,000 – 39,999 SF)
• Our preliminary data for the third quarter of 2012 indicates
that investment sales activity for junior box retail properties fell
slightly during the third quarter of 2012. We are currently aware
of 22 transactions that have taken place over the past three
months, but expect our fi nal tally as more data comes in to
reach about 30 deals. This compares to 45 deals that closed
during the second quarter of 2012 and 48 transactions in the
fi rst.
• Deal volume for the third quarter currently stands at just over
$127.4 million but will likely close out at roughly $175 million.
This compares to a total deal volume of just under $220 million
posted during the second quarter and just under $193.4 million
in sales in the fi rst quarter.
• The average price on the junior box deals that closed during
the third quarter was $146 per square foot. This compares to
an average of $145 per square foot during the second quarter
and $166 per square foot during the fi rst quarter of 2012. One
year ago, this metric stood at $115 per square foot. The steady
decline in the sale of (and inventory of) distressed properties
has been a positive development.
• The average capitalization rate on junior box deals that closed
during the third quarter was 8.2%, up slightly from 8.1% in
the second quarter. This metric has increased slightly over the
past year (it stood at 8.0% twelve months ago). Though the
pool of distressed junior boxes is shrinking, we are continuing to
see trades of weaker properties skewing averages upward. Our
anticipation is that cap rates for junior boxes will be stabilizing
over the next year and begin to move back downward, but the
movement will be slow.
Big Box Retail Trends—Mid-Box Properties
(40,000 – 79,999 SF)
• Our preliminary data for the third quarter indicates that
investment sales activity for mid-box properties fell slightly
during the third quarter of 2012. We are currently aware of 18
transactions that have taken place over the past three months,
but expect a fi nal tally approaching 25 deals. This compares to
33 deals last quarter and 32 transactions in the fi rst quarter of
2012.
• Preliminary deal volume for the third quarter currently stands
at just over $76 million. We expect the fi nal total to approach
$105 million. This compares to a total deal volume of just under
$160 million posted during the second quarter and just under
$172 million in sales transacted during the fi rst quarter of 2012.
• The average price on the mid-box deals we have tracked that
closed during the third quarter currently stands at $125 per
square foot. This compares to an average of $118 per square
foot during the second quarter and $122 per square foot during
the fi rst quarter of 2012. One year ago, this metric also stood
at $122 per square foot.
• The average capitalization rate on junior box deals that closed
during the third quarter was 7.7%. This refl ects a slight increase
from the average cap rate of 8.2% posted during the second
quarter and the 8.0% rate of the fi rst quarter. Yet, exactly
one year ago it stood at exactly the same place; 7.7%. This
number had been decreasing thanks to the fact that the pool of
distressed mid-boxes had slowly been shrinking. However, our
anticipation is that the pendulum will begin swinging the other
way in 2013 as this property type faces higher vacancy and risk
levels.
• Grocery store consolidation will weigh on mid-box fundamentals
in 2013. While there will be a few opportunistic retailers
expanding in this environment, it won’t be enough to absorb the
space that will be returned to the marketplace next year. Look
for increasing overall vacancy and stagnant rental rate growth,
at best.
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
$300
5%
6%
7%
8%
9%
10%
11%
12%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Mid-Box Retail PropertiesAverage Cap Rate & Sale Price (PSF)
$0
$50
$100
$150
$200
$250
$300
5%
6%
7%
8%
9%
10%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Junior Box Retail PropertiesAverage Cap Rate & Sale Price (PSF)
Source: Cassidy Turley Northern California Research, Costar, Real Capital Analytics
Single Tenant Net Lease
Investment Overview Fall 2012
www.cassidyturley.com 11
• Our preliminary data for the third quarter of 2012 indicates that
investment sales activity for mega-box retail properties actually
increased during the third quarter of 2012. We are currently
aware of nine transactions that have taken place over the past
three months, but expect the fi nal tally to include as many as
twelve total deals. This compares to nine deals that closed
during the second quarter of 2012 and twelve transactions in
the fi rst.
• Our preliminary deal volume for the third quarter currently stands
at just over $100 million, with a likely fi nal tally approaching
$125 million. This compares to a total deal volume of just over
$64.1 million posted during the second quarter and just under
$53.5 million in sales transacted during the fi rst quarter of
2012.
• The average price on the mega-box deals we have tracked in the
third quarter was $117 per square foot. This quarter, the sale of
a new Lowe’s in the San Francisco Bay Area and a new Walmart
Supercenter in Southern California’s La Habra community both
helped to skew averages upward. Today’s average of $117 per
square foot compares to an average of $74 per square foot
during the second quarter and just $52 per square foot during
the fi rst quarter of 2012. While our average price per square
foot metric has been skewed upward by some recent Class A
mega-box sales, the fact is that pricing in general for mega-box
properties has been fl at to negative in most markets.
• The average capitalization rate on closed mega-box deals during
the third quarter was 6.4%. Third quarter 2012 activity has
been a bit of an anomaly with brand new product with long-term
leases to the most desired tenants taking place while we saw
few deals with hair on them. This quarter’s low average of 6.4%
compares to an average cap rate of 6.3% last quarter (same
phenomena, different quarter) and 7.7% in the fi rst quarter of
2012. In general, top properties with the best occupancy are
moving at 7.0% cap rates or below, but nearly everything else
is trading above—often signifi cantly above—that rate. The
problem is that most of the problematic properties are simply
not moving at all, which is why the average numbers appear to
refl ect cap rate compression when what is happening is that only
the best properties are moving at all.
• Overall fundamentals for mega-boxes will only deteriorate in the
near-term. There are extremely few active users in this size range
and many of them prefer to work with build-to-suits rather than
second-generation space. Meanwhile, grocery consolidation and
downsizing from major users will return more vacant space to
the market in 2013. Pricing, even for the best quality stabilized
properties with long-term leases in place, will be under extreme
downward pressure.
$0
$25
$50
$75
$100
$125
$150
$175
4%
5%
6%
7%
8%
9%
10%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Mega Box Retail PropertiesAverage Cap Rate & Sale Price (PSF)
Big Box Retail Trends—Mega-Box Properties
(80,000 SF +)
12Cassidy Turley Net Lease Investment Services
Single Tenant Big Box Retail MarketUS Northeast Region Select Major Sale Transactions
Single Tenant Big Box Retail MarketUS Southern Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Junior Boxes (20,000 - 40,000 SF)
LA Fitness 340 S. 25th St, Easton, PA 38,532 04/2012 $8.43 M $219 9.0%
Savers 3701 McKinley Pkwy, Buffalo, NY 21,525 03/2012 $3.40 M $157 8.5%
Mid-Boxes (40,000 - 80,000 SF)
Best Buy South Bay Center SC, Boston, MA 45,453 08/2012 $21.00 M $462 7.0%
ShopRite 12028 Cherry Hill Rd, Silver Spring, MD 64,626 06/2012 $13.78 M $213 6.4%
Best Buy 30 Andrews Dr, Little Falls, NJ 45,000 04/2012 $12.70 M $283 8.0%
Whole Foods 340 River St, Cambridge, MA 40,000 02/2012 $12.20 M $305 5.8%
LA Fitness 5466 Hadley Rd, South Plainfi eld, NJ 45,000 06/2012 $9.84 M $219 8.5%
Mega-Boxes (80,000 SF +)
Lowe's 3206 Peach Orchard Rd, Augusta, GA 135,197 09/2011 $15.00 M $111 7.3%
BJ's Wholesale Club 495, Hubbard Ave, Pittsfi eld, MA 85,176 02/2012 $14.70 M $172 7.2%
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Junior Boxes (20,000 - 40,000 SF)
Best Buy 5916 W TX 289 Loop, Lubbock, TX 30,315 03/2012 $5.70 M $188 8.0%
Northern Tool & Equipment 1625 Patton Ave, Asheville, NC 25,454 05/2012 $3.93 M $154 8.5%
Dollar General Market Carter Blvd & Commonwealth Ave, Polk City, FL 20,707 05/2012 $3.64 M $176 7.9%
Staples 3155 Columbia Blvd, Titusville, FL 23,942 04/2012 $3.31 M $138 9.6%
Dollar General Market 1313 W 3rd St, Jackson, GA 24,750 05/2012 $2.70 M $109 8.3%
Mid-Boxes (40,000 - 80,000 SF)
Nordstrom Rack Walter's Crossing SC, Tampa, FL 44,925 04/2012 $11.99 M $267 7.4%
Best Buy 4001 W 20th Ave, Hialeah, FL 55,880 03/2012 $10.64 M $168 8.5%
Carmike Cinema 416 Exchange Blvd, Bethlehem, GA 45,286 03/2012 $8.00 M $177 9.1%
Gold's Gym 2360 W Kenosha St, Broken Arrow, OK 40,961 08/2012 $6.80 M $166 8.5%
Food City 4100 Cool Springs Rd, Morristown, TN 47,800 03/2012 $4.69 M $98 9.0%
Winn-Dixie 740 N Schillinger Rd N, Mobile, AL 53,574 04/2012 $4.25 M $79 9.5%
Mega-Boxes (80,000 SF +)
Kohl's Marketplace at Cumming SC, Cumming, GA 86,584 08/2012 $8.50 M $98 8.0%
Single Tenant Net Lease
Investment Overview Fall 2012
www.cassidyturley.com 13
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Junior Boxes (20,000 - 40,000 SF)
Golfsmith 2020 Butterfi eld Rd, Downer's Grove, IL 25,012 02/2012 $5.75 M $230 7.8%
HH Gregg Appliances 2757 E 81st Ave, Merrillville, IN 32,961 02/2012 $4.96 M $144 8.7%
Marsh Supermarket 11865 Hamilton Avenue, Cincinnati, OH 32,117 07/2012 $3.70 M $115 10.0%
HH Gregg Appliances Joliet Mall, Joliet, IL 23,112 02/2012 $2.83 M $122 8.7%
Mid-Boxes (40,000 - 80,000 SF)
Pick N Save 2633 S Business Dr, Sheboygan, WI 70,000 09/2012 $14.12 M $202 7.7%
LA Fitness 201 Ogden Falls Blvd, Oswego, IL 45,000 03/2012 $9.20 M $205 8.8%
Home Depot 99 NE Northtown Dr, Blaine, MN 72,167 07/2012 $6.65 M $92 5.8%
Kohl's 590 W 300 N, Warsaw, IN 68,336 03/2012 $6.50 M $95 6.7%
Mega-Boxes (80,000 SF +)
Shopko 2320 Lineville Rd, Green Bay, WI 80,000 08/2012 $9.70 M $121 8.1%
Kmart Imperial Plaza SC, Clinton Township, MI 87,543 02/2012 $3.23 M $37 10.0%
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Junior Boxes (20,000 - 40,000 SF)
24 Hour Fitness One Pacifi c Plaza, Huntington Beach, CA 36,000 05/2012 $13.80 M $383 7.1%
PetSmart East Hills Village SC, Bakersfi eld, CA 34,879 03/2012 $4.70 M $135 7.8%
Goodwill18901 Soledad Canyon Rd, Canyon Country,
CA21,800 06/2012 $4.51 M $207 7.0%
Smart & Final 3400 White Lane, Bakersfi eld, CA 20,815 07/2012 $4.01 M $193 7.5%
Mid-Boxes (40,000 - 80,000 SF)
Burlington Coat Factory Bristol & Segerstrom Plaza SC, Santa Ana, CA 58,450 06/2012 $12.10 M $207 8.5%
Whole Foods 900 Reichart Ave, Novato, CA 40,000 04/2012 $23.00 M $588 5.8%
Sports Authority Town Gate Crossing SC, Moreno Valley, CA 40,000 02/2012 $7.85 M $196 8.3%
In Shape Health Club 1313 S Mooney Blvd, Visalia, CA 43,279 07/2012 $6.15 M $142 8.9%
Mega-Boxes (80,000 SF +)
Lowe's San Bruno Town Center SC, San Bruno, CA 106,387 07/2012 $33.00 M $310 5.7%
Forever 21 Montebello Town Center SC, Montebello, CA 87,061 05/2012 $20.75 M $238 6.3%
Sam's Club Woodmen Commons SC, Colorado Springs, CO 128,065 01/2012 $17.30 M $135 7.3%
Walmart 1000 E Imperial Hwy, La Habra, CA 103,000 08/2012 $16.50 M $160 5.6%
Single Tenant Big Box Retail MarketUS Midwest Region Select Major Sale Transactions
Single Tenant Big Box Retail MarketUS West Region Select Major Sale Transactions
Single Tenant Net Lease
Investment Overview Fall 2012
14Cassidy Turley Net Lease Investment Services www.cassidyturley.com
Single-Tenant Industrial Investment Trends
• Our preliminary data for the third quarter of 2012 indicates that investment
sales activity for single-tenant industrial investment properties decreased during
the third quarter of 2012. We are currently aware of 206 transactions that have
occurred over the past three months and expect our fi nal deal tally to reach 275
total deals. This would compare to 429 transactions during the second quarter
of 2012 and 395 deals that closed during the fi rst quarter of this year.
• Preliminary deal volume for single-tenant industrial investment sales during the
third quarter currently stands at just over $1.0 billion, and we expect our fi nal
tally to approach $1.3 billion. This compares to a total deal volume of $1.2
billion posted in the second quarter and $972 million in sales transacted during
the fi rst quarter of 2012.
• The average capitalization rate on deals that closed during the third quarter was
6.9%. But this number has been skewed downward due to a few exceptional
deals. In general, we are still seeing quality properties trading in the 7% range.
This quarter’s average compares with an average of 7.0% posted last quarter
and 7.4% during the fi rst quarter of this year.
• Our year-to-date totals for the fi rst nine months of 2012 indicate that single-
tenant industrial buyer activity breaks down as follows; private investors
accounted for 50% of all deals (compared to 40% last year), institutional
investors accounted for 23% of all activity (down from 28% in 2011), REITs
accounted for 18% (against 13% last year) while foreign investors, users and
unknown buyer types accounted for the remaining 9% of activity.
• Demand from private investors has been on the rise. They have accounted for
half of all the deals transacted so far this year, compared to 40% last year.
REIT deal activity is also up; they accounted for 18% of all the deals transacted
so far this year, compared to 13% last year. Institutional activity, however, has
fallen slightly. Institutional buyers accounted for 28% of all deals in 2011, but
just 23% so far in 2012.
$0
$25
$50
$75
$100
$125
$150
4%
5%
6%
7%
8%
9%
10%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cap Rate Average Price PSF
Single Tenant Industrial PropertiesAverage Cap Rate & Sale Price (PSF) Trend
Source: Cassidy Turley Northern California Research, Costar, Real Capital Analytics
Industrial Fundamentals
On The Upswing
Industrial properties have often been overlooked
in favor of their more glamorous retail cousins. But
despite the fact that they don’t see the same levels
of demand as drug stores or fast food buildings,
a modern distribution building with a long-term
lease in place to FedEx can be every bit as secure
and lucrative an investment as a well-situated
McDonald’s. Of course, even in the healthiest of
markets, industrial properties tend to trade at higher
cap rates than most retail net-leased properties. This
is primarily because the shorter lease terms typical
of industrial users but this had been exacerbated
since the beginning of the downturn by concerns
over industrial fundamentals.
The good news is that fundamentals are showing
marked improvement nationally. Of the 67 major
U.S. industrial markets that Cassidy Turley tracks,
46 reported growth during the second quarter (third
quarter numbers were not available at the time
that this report went to press) with some markets
reporting relatively tight vacancy levels of 7.0% or
less. Among the tightest industrial markets were;
Albuquerque (6.9%), Anaheim/Orange County
(2.8%), Denver (7.0%), Honolulu (2.2%), Houston
(6.6%), Indianapolis (4.2%), Los Angeles (5.5%),
Miami (6.1%), New York (3.8%), Long Island
(4.7%), Oklahoma City (6.6%), Omaha (4.3%),
Salt Lake City (2.1%) and Seattle (5.8%). The
trend towards decreasing vacancy should continue
to increase as the economy slowly improves and
industrial development remains extremely low and
almost entirely focused on build-to-suit projects.
The completion of the Panama Canal expansion in
2014 will steadily have a positive impact on demand
in port cities over the next couple of years as well.
These factors, as well as an improving lending climate
and an increased willingness of investors to seek out
higher risk/higher reward properties will bode well
for single-tenant industrial investment demand in
2013. Improving vacancy and rental rate growth will
help to contribute to an overall rise in investment
pricing and generalized cap rate compression over
the next year. Whereas traded industrial properties
averaged cap rates in the 8.0% range as recently as
twelve months ago, rapidly improving fundamentals
are already driving prices up and cap rates down.
Quality product with strong tenancy in place moving
in most markets with cap rates in the 7.0% range,
though we have seen lower in the best performing
U.S. markets. Meanwhile, we continue to see vacant
or distressed assets trading with cap rates of 9.0%
or more.
15
Single Tenant Industrial Market US Northeast Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
FedEx Ground 622 Route 303, Blauvelt, NY 142,139 04/2012 $46.50 M $327 7.5%
Kmart Distribution Center 1475 Nitterhouse Rd, Chambersburg, PA 862,450 08/2012 $44.80 M $52 10.3%
Navistar Parts 105 Steam Boat Blvd, Manchester, PA 390,000 02/2012 $21.82 M $66 7.1%
FedEx Freight 2 Boon Dr, North Chili, NY 111,865 03/2012 $19.74 M $176 7.7%
Crown Cork & Seal 8801 Citation Rd, Roseville, MD 156,797 07/2012 $10.25 M $65 6.0%
FedEx Ground 7500 Birkmire Dr, Fairview, PA 64,401 07/2012 $6.65 M $103 7.8%
Single Tenant Industrial Market US Southern Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Williams Sonoma 7755 Polk Ln, Olive Branch, MS 1,106,876 08/2012 $52.40 M $47 7.9%
Quaker Oats 747 Douglas Hill Rd, Lithia Springs, GA 913,000 04/2012 $40.00 M $44 6.9%
Southwest Distribution Center 5450 W Kiest Blvd, Dallas, TX 500,000 06/2012 $18.17 M $36 6.4%
Deerwood Glen Business Park 405 Deerwood Glen Dr, Deer Park, TX 160,000 07/2012 $17.80 M $111 6.7%
Atlanta Industrial Park 3755 Atlanta Industrial Pky N, Atlanta, GA 407,981 08/2012 $11.30 M $28 8.9%
Lowe's Distribution Center 510 Hester Dr, White House, TN 252,000 03/2012 $8.00 M $32 8.3%
FedEx Ground 7 American Woodmark Dr, Humboldt, TN 50,824 07/2012 $5.33 M $105 7.8%
Single Tenant Industrial Market US Midwest Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Clorox 2400 Dralle Rd, University Park, IL 1,350,000 03/2012 $64.25 M $48 6.6%
Crate & Barrel 1860 W Jefferson Ave, Naperville, IL 827,268 02/2012 $46.35 M $56 6.5%
The Pillsbury Company 2089 Pillsbury Dr, Geneva, IL 359,499 05/2012 $33.10 M $92 7.7%
Edward Don & Co 9801 Adam Don Pkwy, Woodridge, IL 362,500 07/2012 $27.10 M $75 6.2%
Attachment Distribution Center 2900 Research Pkwy, Davenport, IA 552,960 05/2012 $26.10 M $47 8.8%
FedEx Ground 2929 Halvor Lane, Superior, WI 56,951 08/2012 $9.10 M $169 7.7%
Single Tenant Industrial Market US West Region Select Major Sale Transactions
Property Total SF Sale Date Sale Price Price PSF Cap Rate
Fowler Distribution Center 800 N 75th Ave, Phoenix, AZ 418,388 08/2012 $90.29 M $71 5.4%
Midway Distribution Center 11101 Etiwanda Ave, Fontana, CA 611,968 04/2012 $42.00 M $62 5.1%
Mid-Point Technology Park 550 Broadway Ave, Redwood City, CA 71,200 04/2012 $28.00 M $393 6.0%
Tolleson Distribution Center 9704 W Roosevelt St, Tolleson, AZ 302,640 06/2012 $15.16 M $50 6.0%
American Tire Distributors 955 Aeroplaza Dr, Colorado Springs, CO 125,060 09/2012 $8.31 M $66 7.4%
Boart Longyear 7103 W Augusta Ave, Glendale, AZ 19,841 04/2012 $4.49 M $216 7.4%
16
About Cassidy Turley Cassidy Turley is a leading commercial real estate services provider with more than
3,600 professionals in more than 60 offi ces nationwide. The company represents
a wide range of clients—from small businesses to Fortune 500 companies, from
local non-profi ts to major institutions. The fi rm completed transactions valued at
$22 billion in 2011, manages 455 million square feet on behalf of institutional,
corporate and private clients and supports more than 28,000 domestic corporate
services locations. Cassidy Turley serves owners, investors and tenants with a
full spectrum of integrated commercial real estate services—including capital
markets, tenant representation, corporate services, project leasing, property
management, project and development services, and research and consulting.
Cassidy Turley enhances its global service delivery outside of North America
through a partnership with GVA, giving clients access to commercial real estate
professionals in 65 international markets. Please visit www.cassidyturley.com for
more information about Cassidy Turley.
Andy BogardusSan Francisco
415.677.0421
abogardus@ctbt.com
Our Net Lease Services team understands the complexities and dynamics of the Net Lease marketplace. Our national platform
is managed by an advisory committee composed of industry leaders from across the country.
Please contact any of the following advisory committee members for more information on Cassidy Turley Net Lease Investment Services.
Visit www.cassidyturley.com for more information on the full range of Cassidy Turley commercial real estate services.
Chuck KleinSan Diego
858.546.5473
cklein@cassidyturley.com
Garrick BrownDirector of Research
San Francisco
916.329.1558
gbrown@ctbt.com
For more information regarding
this report, contact:
Ric RussellSan Francisco
415.781.8100
rrussell@ctbt.com
Bob SannerSan Francisco
415.677.0439
bsanner@ctbt.com
Core Services
• Tenant Representation
• Project Leasing
• Property Management
• Project & Development Services
• Capital Markets
- Debt Placement
- Investment Sales
- Note Sales
- Structured Finance
• Corporate Services
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Practices and Specialties
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Real Estate
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Doug LongyearSan Francisco
415.677.0458
dlongyear@ctbt.com
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