U.S. net-lease market performs despite volatility, inflation pressures

U.S. net-lease market investors are “stress-testing” based on future rate increases and the potential for a recession, according to a new report from JLL Capital Markets.

The report found that there is ample liquidity in the market and all property sectors already are ahead of 2021’s pace, despite easing momentum in the second half of the second quarter of the year. Even so, JLL anticipates owners of assets with significant gains will continue to be active sellers.

According to JLL, volatility and risk measures are elevated in the U.S. net-lease market, as market participants grapple with the impacts and scale of inflation and actions by the central bank. In addition, debt markets are liquid but volatile, with upward pricing pressure taking place across the board.

For the full report, click here.