Industry trends

The Current State of the Net Lease Market: A Post-Boom Reset After a blistering run during the low-rate era of 2020 and 2021, the net lease market has entered a new phase—more measured, more cautious, but still fundamentally sound. The sector, once flooded with 1031 exchange capital chasing yield and safety, has seen a meaningful slowdown, particularly among private exchange buyers. That said, demand hasn’t disappeared—it’s just become smarter, more disciplined, and more selective. Interest Rates: The Elephant in the Room The most significant factor reshaping the market is interest rates. With the 10-year Treasury hovering in the 4.3%–4.8% range,...

The 1031 exchange, named after Section 1031 of the Internal Revenue Code (IRC), has become a cornerstone of real estate investment strategy. It allows investors to defer capital gains taxes when they sell a property and reinvest the proceeds into a like-kind property, helping to facilitate the growth of real estate portfolios without being penalized by immediate taxation.