A big crowd packed the halls of the University Club of Chicago in downtown Chicago July 24 for the 11th annual National Net Lease Summit held by Midwest Real Estate News. And why not? The biggest names in the net lease industry were on hand to share their thoughts on the reliable but continually evolving commercial sector.
And what did attendees hear? The net lease sector faces challenges, as do all commercial real estate sectors. But net lease remains one of the most resilient sectors. Investors still view commercial real estate, and net lease real estate, as a safe place to park and grow their dollars. That doesn’t change even if the U.S. economy is going through challenging times.
Panelists spoke, too, about the strength of specific net lease asset types, properties such as dollar stores, auto care and quick-service dining facilities. These assets continue to draw customers and investors.
What will the future hold for net lease? Panelists said that they see even brighter days ahead for this sector as some of the uncertainties facing the economy — such as the threat of tariffs — are resolved.
Randy Blankstein, president of Wilmette, Illinois-based The Boulder Group, and a participant in the summit, said that the industrial and quick-service-restaurant sectors of the net lease market are seeing the most demand from tenants today.
He also said that sale-leaseback activity accelerated in the first half of the year as companies seek to bolster their balance sheets even as interest rates remain high and economic uncertainty continues to hit the United States.
And what about the thoughts of net lease professionals? Are they optimistic about the state of the net lease sector?
Blankstein said that he is cautiously positive about the future.
“The net lease market continues to show signs of stabilization after three years of cap rate increases, with the second quarter marking a notable change in pricing momentum,” Blankstein said. “While transaction volume remains below historical peaks, particularly in the 1031 exchange space, the narrowing bid-ask spreads and continued institutional participation suggest improved market liquidity.”
Blankstein said that investors are closely watching Federal Reserve policy signals and broader capital market conditions as they evaluate acquisition opportunities. He said that with cap rate movements moderating and supply-demand dynamics showing greater balance, net lease activity should gain momentum through the rest of 2025.
Another highlight of the day? The networking opportunities. With hundreds of commercial real estate professionals in attendance, guests to the summit had plenty of chances to meet with their peers to discuss the state of the market, swap notes on intriguing properties and maybe plant the seeds of future deals.
Kicking off the event was the National Net Lease Market Overview panel, which focused on the challenges of navigating today’s volatile market. Participating in this panel were Zachary Pasanen, Managing Director, Investments, W. P. Carey; Randy Blankstein, President, The Boulder Group, who also served as the panel’s moderator; Joel Tomlinson, Managing Director, Ares Management; Barclay Jones, Managing Director, The Carlyle Group; Gordon Whiting, Managing Director, Founder and Co-Head Net Lease Real Estate strategy, TPG Angelo Gordon; Richard Hurd, Founder and President, Hurd Real Estate; and Nicoletti DePaul, Chief Operating Officer, SURMOUNT.
The Industrial Net Lease – Leading the Marketplace panel focused on the performance of the still-resilient industrial sector. Speakers were Sean Hostert, Author, Net Lease Observer, the panel’s moderator; Angie Wethington, Senior Director, Scannell Properties; Jeff Lizzo, Managing Director, STREAM Capital Partners; and Briggs Goldberg, Managing Director, Newmark.
The event’s third panel, 1031 Exchange Trends – Navigating a Changing Landscape, focused on the challenges facing 1031 exchanges and the potential rewards in this sector. Participating in this panel were Todd Phillips, CEO, Legacy Property Trust, moderator; Matthew Douglas, Senior Director, Accruit; Greg Schowe, Division Manager, Asset Preservation, Inc.; Chris Newton, Executive Vice President, Chicago Deferred Exchange Company; Spencer Lund, Chief Investment Officer, NAI Legacy; James Lockhart, Tax Partner, Real Estate, Aprio Advisory Group, LLC; and Paul Abdow, CIMA, Managing Director, Net Lease Capital.
Speaking on the Sale-Leaseback Market Update – Gaining Momentum panel were Steven Chod, Managing Director, Kroll Real Estate Advisory Group; James Hanson, Principal, Capital Markets Group, Avison Young; Karly Iacono, Senior Vice President, National Net Lease, CBRE Investment Properties; David Piasecki, Managing Member, Blue Vista Capital Management LLC; JC Asensio, Executive Managing Director, Newmark; Elizabeth J. Randall, CCIM, President, Randall Commercial Group, LLC (Moderator); and Dennis Cisterna III, Managing Partner and Chief Investment Officer, Sentinel Net Lease.
Looking into their crystal balls for the Net Lease Market Conditions and Forecast 2025 – Waiting for a Rebound panel were Evan Beeson, Senior Investment Advisor, Sands Investment Group; Anthony Walters,/ Senior Director, JLL Capital Markets; Neil Abraham, President, Realty Income International; Christian Tremblay, Vice President, Northmarq; Maury Vanden Eykel, Executive Vice President, CBRE (Moderator); and Daniel M. Taub, Senior Vice President, National Director, Retail, Marcus & Millichap.
The Capital Markets Overview – State of Refinancing panel closed out the day. Speaking on this panel were Caity McLaughlin, Principal, Credit Tenant Lease Financing, PGIM Private Capital (Moderator); Bob Farina, Senior Vice President, Commercial Real Estate Division, Old National Bank; Chris Miller, Managing Director, Triple Net Lending; and Sean Keane, Senior Vice President, NNN Finance Director, First Savings Bank.
