Net lease market strong
(1) The Regulators putting the squeeze on the Banks
Regulators remember that little income was generated during the post-market collapse and are now applying tighter restrictions on lending, making no distinction between asset class, and being extra strict on lending classes with no cash flow. This is hard for banks because they’ve always focused on short-term lending. Developers looking for debt for construction and gut rehabs, in particular, are finding an extremely compressed lending landscape.
(2) The great divide Between Equity and Debt Capacity
Low debt keeps the market happy, and while prices are rising and falling, real estate with that cash flow well are selling for amazing prices. There is a tremendous amount in unfunded real estate commitments, which is increasing the divide between equity and debt capacity.