The Matthews Podcast – Episode #15
Where are the buyers? An overview of the net lease market, sale leasebacks, and macro factors impacting the sector
In this episode of the Matthews™ podcast, your host Matthew Wallace is joined by Matthews™ Simon Assaf, Vice President and Director of net lease. He is recognized as an expert in his field and is a go-to resource for many as he encompasses a wide range of knowledge on a variety of industries within commercial real estate. Through opening the office in Scottsdale, AZ, in 2020, he has mentored agents in the single-tenant net lease industry, car wash/gas station operations, self-storage, and hospitality.
In this episode, we dive into which industries are the most active and some of the hurdles surrounding others. Topics touched on in this episode include sale leasebacks, macro factors like the high inflation and the high-interest rate environment, and how to prepare your portfolio for a downturn.
01:41 — What industries are most active for buyers right now and which have slowed down?
03:18 — When we talk about the cost of capital, how is that impacting STNL? How are the Fed’s actions impacting the transactions market?
04:25 — How are you seeing buyers in the space finance these deals?
05:39 — What do you mean by “buyers being undefeated”?
06:34 — How do we get sellers to come to accept the new reality?
07:37 — How have the turbulences in the banking market impacted transactions and the ability to finance deals?
10:24 — What about the investors that are getting deals done? What are their motivations?
12:07 — What would you advise someone that’s looking to dip their toe into STNL? What do they need to do as an investor to make sure that they are making the right decision for their portfolio?
14:38 — What do you see in terms of the downsides of sale leasebacks?
16:33 — Can you explain to our listeners what a reverse build-to-suit is and the benefits?
17:49 — Do you have any parting words of advice for investors navigating this turbulent market?