Fitness centers, education facilities and specialty medical buildings that emerged as alternative net lease assets a few years ago are showing up in more property portfolios as investors hunt for yield in an increasingly crowded conventional net lease market. Investors may not consider the properties part of the net lease mainstream yet, but the growing momentum suggests that perceptions could soon change: Non-traditional assets are starting to trade with more frequency and, subsequently, capitalization rates have started to compress, say net lease experts.
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