CORONA DEL MAR, CA—A recent rate hike (with more on the horizon) hasn’t mellowed Starbucks’ current buzz for retail net-lease investors. The single-tenant retail investment market remains hot, especially for national credit tenants on long-term leases. That’s according to Bill Asher, EVP at Hanley Investment Group, who says this category will be the last to adjust to changing rates, as most buyers are acquiring single-tenant assets all-cash with no debt. He notes the largest pool of buyers still exist in this sector, and it’s producing record pricing for sellers. “Buyers continue to pay premium yields in the 4.0%-5.5% range unleveraged and even most recently sub-4% for tenants such as Starbucks located in major MSAs nationally,” Asher says.
GlobeSt.com talked with Asher to get his thoughts on the investment prospects for the coffee retailer.
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