Positive energy. It can be difficult to find in the commercial real estate market today, what with the industry still fighting through the impact of high interest rates. But positivity was sighted during REjournals’ 10th annual Net Lease Summit held July 25 at the University Club of Chicago.
Why the optimism? Speakers didn’t hide the fact that the net lease industry, like all commercial segments, is going through challenges today. But they also acknowledged that the industry has faced hurdles before. And commercial real estate always adapts and survives.
There was hope, too, that the Federal Reserve Board might cut its benchmark interest rate this year. That should provide a boost for the net lease industry.
There was plenty of energy in the room, too, just because of the sheer numbers. This year’s Net Lease Summit boasted a full house, as attendees gathered to hear the insights of the industry’s top players from across the country.
Panelists participating in the event said that this year’s summit provided attendees with both important networking opportunities and valuable information as they navigate today’s challenging market.
“I appreciate the opportunity to participate,” said one panelist. “I believe our positive tone was reasonable for our experiences and what we were seeing in the market. Obviously, some of the other panels were not quite as positive, but all presentations/discussions were thought-provoking.”
Panelists addressed the challenges thrown toward the industry because of higher interest rates. They focused on the steady nature of industrial real estate, the challenges faced by the sale-leaseback sector, trends in the 1031 exchange business and the hope for a brighter future for net lease real estate.
Participating in the first panel of the day, the National Net Lease Market Overview, were Daniel Taub, Senior Vice President, National Director, Retail, Marcus & Millichap; Richard Hurd, Founder and President, Hurd Real Estate; Randy Blankstein, President, The Boulder Group, who served as moderator; Chris Capolongo, Managing Director, Net Lease Real Estate, TPG Angelo Gordon; Adam Scherr, Managing Director, Sands Investment Group; and Zachary Pasanen, Managing Director, Investments, W.P. Carey.
The Industrial Net Lease panel might have been the most optimistic of the day, given this sector’s steady performance even during these challenging times. Speaking on this panel were Angie Wethington, Senior Director, Scannell Properties; moderator Jonathan Wolfe, Managing Principal, STREAM Capital Partners; Douglas Longyear, Executive Director, Capital Markets, Net Lease Group, Cushman & Wakefield; and Jerry Hopkins, Executive Managing Director, Net Lease Capital Markets, Newmark.
The focus during the Capital Markets Overview panel was, not surprisingly, on the Fed. The hope is that the Fed will lower its interest rate this year. Speaking on this panel were Sean Keane, Senior Vice President, NNN Finance Director, First Savings Bank; moderator Ralph Cram, President, Envoy Net Lease Partners; Isaiah Harf, Regional Managing Director, Northmarq; Josh Zhang, Director of Investments, Four Corners Property Trust; Caity McLaughlin, Vice President, Credit Term Lease Financing, Prudential Private Capital; Farhan Kabani, Executive Vice President, CBRE.
Participants in the Sale-Leaseback Market Update panel were Moderator: Elizabeth Randall, President, Randall Commercial Group; Daniel Nyhan, Managing Director, Sale Leaseback Capital, Mesirow; Dennis Cisterna, Managing partner and CIO, Sentinel Net Lease; Briggs Goldberg, Managing Director, Sale-Leaseback & Net Lease Properties, Newmark; and James Hanson, Principal, Capital Markets Group, Avison Young.
The focus was on resiliency and the hope for a brighter future during the Net Lease Market Conditions & Forecast panel. This panel’s speakers were George Ghattas, Senior Vice President, Mid-America Real Estate Corporation; Jason Jarchow, Director of Transactions/Net Lease Strategies, PREP Property Group; moderator Guy Ponticiello, Executive Vice President, CBRE; Anthony Walters, Senior Director, JLL Corporate Capital Markets & Net Lease; Daniel Waszak, Executive Vice President, Quantum Real Estate Advisors; and Erik Conrad, CEO, InCommercial Property Group.
The summit concluded with the Insights on 1031 Exchange Trends panel, featuring a deep dive into the exchange industry, including possible changes hitting the industry and the potential impact of the presidential election. Participating in this panel were moderator Todd Phillips, Chief Strategy Officer, Providence Tax & Advisory; Spencer Lund, Chief Investment Officer, NAI Legacy;
Christopher Newton, Executive Vice President, Chicago Deferred Exchange Company; Anna Barsky, Vice President/Business Development Office, Investment Property Exchange Services(IPX1031); and Matthew Douglas, Senior Director, Accruit.