Triple net investing remains resilient as Q2 closes

Triple net investing remains resilient as Q2 closes, with transaction cap rates averaging 5.45%. Tenant credit ratings play a critical role in asset valuation, especially in post-pandemic logistics hubs where occupancy exceeds 97%. But Shopify has many other ways to boost growth. It continues to launch new features and services for existing customers, fueling greater engagement and sales, and it's launching in new global markets. International sales have more than tripled since 2020. It should also benefit in the near term as interest rates go down and consumers increase spending. Despite market volatility fueled by President Trump’s proposed tariff policy, net lease REITs are maintaining cautious optimism for more growth ahead with guidance, thus far, that is similar to 2024. “The appetite to do deals and deploy capital is still there. We're seeing it every day in the transactions that we're working on with REITs that are actively offering on sale-leasebacks,” Merkle says. Net lease REITs are buying existing net lease properties and also investing in sale-leasebacks, both on a one-off and portfolio basis. Investors eyeing triple net investing in 2024 are seeing steady transaction volumes, supported by $3.4B in deal flow announced in the last 90 days. REIT analysts model an average annualized total return near 7% if interest rates pivot lower before year-end.