Target and Costco Set to Open in D.C. in 2012

Net Lease Press Releases

The players are likely to be Costco and Target, potentially Shoppers Food Warehouse and Staples, even Wal-Mart was once in the lineup.

DCmud reports that the final moves have been made to start construction of the Shops at Dakota Crossing, a 42-acre development in the Fort Lincoln area of Northeast,Dc where Costco will serve as an anchor tenant. 

In all, the plan allows for 26 tenants in 13 buildings at the Shops, but as of now, only 182,060 of the 430,000 s.f. has been claimed by tenants: 154,000 s.f. by Costco and 28,060 s.f. by Marshalls. After Costco's building is delivered late next year, the rest of the development will continue to rise and retailers are expected to be able to settle into spaces by mid-2013.In all, the plan allows for 26 tenants in 13 buildings at the Shops, but as of now, only 182,060 of the 430,000 s.f. has been claimed by tenants: 154,000 s.f. by Costco and 28,060 s.f. by Marshalls. After Costco's building is delivered late next year, the rest of the development will continue to rise and retailers are expected to be able to settle into spaces by mid-2013.

 

http://dcist.com

 Fort Lincoln is a neighborhood located in northeastern Washington, D.C. It is bounded by Bladensburg Road to the northwest, Eastern Avenue to the northeast, New York Avenue NE to the south, and South Dakota Avenue NE to the southwest. The town of Colmar Manor, Maryland, is across Eastern Avenue from the Fort Lincoln neighborhood, as is the Fort Lincoln Cemetery.

The name Fort Lincoln was originally used for a Civil War Fort in adjacent Prince George's County, Maryland, across the D.C. line from the Washington neighborhood bearing its name.

Calkain Cos., and New York-based Chandan Economics are Partnering to Produce Research in the Net Lease Market

Net Lease Press Releases

Now two companies locally-based Calkain Cos., and New York-based Chandan Economics are partnering to produce research in the net lease space

There is no comparable body of research for the net lease space, however. Now two companies locally-based Calkain Cos., and New York-based Chandan Economics are partnering to produce research in the net lease space. The companies, headed by Jonathan Hipp and Sam Chandan, respectively, plan to launch a quarterly publication starting in the next 30 to 60 days. Initially, the publication, called Net Lease Economic Report, will be available for free to its clients. The goal will be to analyze the impact and relationship between tenant, developer and investor demand for net lease assets—as well as establish relationships with broader economic trends.

“This subset of commercial real estate has been growing for the past two years and attracting new investor interest,” Chandan tells GlobeSt.com. “There is a need for much more rigor behind the research and understanding of the investment.”

The last two years have indeed attracted new levels and types of investors, Hipp tells GlobeSt.com, primarily a combination of institutional and private market investor. 

“The net lease investment profile can be very appealing especially when there is a lack of predictability and enhanced risk around commercial real estate in general.” Net lease’s stability is one reason why it has been attracting growing levels of investment, Hipp adds.

“That flight to safety that happened after 2008 and 2009 and has continued to make the net lease an asset class highly sought after and highly attractive to investors.”

www.calkain.com

Net Lease Cap Rates Press Releases

Net Lease Press Releases 

Net lease cap rates fell by 25 basis points in 2011. The primary drivers of this trend are lack of product (especially high quality product) and an ease in lending conditions.


Construction of new net lease product continues to flow at a trickle while financing has become more available – with local and regional banks competing with insurance companies for credit tenant deals. Investors have shown the willingness and ability to invest but are hindered by lack of product to satiate their demand. This lack of supply and increase in demand has forced prices up and cap rates down – many would argue that 2012 promises to be a seller’s market in 2012.


 It is worth noting that these numbers illustrate the average trend in net lease cap rates and the net lease market itself is highly diverse depending upon tenant, lease terms and location. Though these factors have always been significant, their effects have recently compounded. Investors have shown a preference for high quality tenants in prime – urban and suburban – locations and are willing to pay some of the highest prices in recent years to obtain them. Cap rates in prime markets can be up 125bps lower than the charted averages of many segments. However, investors are increasingly showing interest in properties containing lower credited tenants or located in secondary locations – exchanging risk for higher returns. 


Net lease investments continue to gain traction as an alternative investment instrument for cash flow and yield investors.


Read full report here.