As the pandemic continues, single-tenant, triple-net assets have become attractive to investors. During times of instability in the market, investors seek more stable investments. These assets tend to be more secure; some might even say recession-proof, increasing the demand for single-tenant, triple-net assets.
Single-tenant, triple-net assets are considered a safe route during economic uncertainty. In the current market, most capital is looking to reduce risk. “We believe that many investors are currently in a flight to safety where they are looking for assets that provide downside protection or reduce overall risk,” says Festa. “As a result, we are seeing an influx of investment and development within the single-tenant triple-net space.” While the increase in demand for single-tenant, triple-net assets continues, developers begin launching new construction projects in this niche asset class. Tauro Capital Advisors recently closed three loan facilities valued at $50 million for developers building new single-tenant properties.