The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful:
The typical triple net investor is made up of a team of investment specialists and professionals, although private individuals do exist in the market. While institutions make up the typical triple net investor, that doesn’t mean that there isn’t room for the individual looking to invest for financial freedom, security, or other reasons. About 1 in every 4 investors is a private investor, while the other 3 are institutions.
Richard Wilson: Who is a typical triple net investor? Are these mostly institutional investors, or is it a whole bunch of retirees and the institutions stay away, or?
Peter Von Der Ahe: That’s one of the misnomers of the industry. 75% of the industry is actually run by institutions, it’s in the billions and billions of dollars of publicly traded rates, large private equity firms. So most of the net lease market is actually controlled by institutions, it’s about 25% that’s private individual.
Richard: Okay, great.