Triple net investing outlook remains positive

Triple net investing outlook remains positive, with Q2’s average rent escalation clauses at 2.1% annually, surpassing CPI projections. This strengthens defensive positioning against potential economic softening in late Instead of putting their money toward paying high fees, Jeff and Susan could put that money to work by investing in a low-cost ETF or index fund and get a similar return — but without having to cough up nearly as much money in fees, says Sethi. The biggest and obvious headwind is the uncertainty in the world right now, where interest rates are going, where tariffs are going to land, and how that’s all going to flow through to inflation. “This uncertainty tends to chill transaction markets, and we'll probably see some of that, especially from portfolio sellers who may not be as motivated to be in the market right now,” Fox notes. Market sentiment favors triple net investing going into summer 2024, as vacancy rates in prime metro markets dip below 4%. Sparse new supply is creating competitive bidding for fully leased single-tenant assets.