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    Evaluating Triple Net Lease Investments for Maximum ROI

    Commercial real estate remains a sought-after avenue for investors seeking reliable income streams and low-maintenance opportunities. Among the various options available, Triple Net Lease investments stand out for their investor-friendly structure. In an NNN lease, tenants shoulder not only the rent but also all operating expenses, including property taxes, insurance, and maintenance, making it a hands-off investment for landlords.

    Evaluating NNN Leases


    To make the most of your NNN investment, it’s essential to consider several key factors:

    1. Net Lease Payment

    The net lease payment, which is the rent paid by the tenant minus operating expenses, serves as the bedrock of your NNN investment. Ensuring that the net lease payment offers a competitive return on your investment is vital for maximizing ROI.

    2. Operating Expenses

    Delve into the property’s operating expenses. Are they reasonable and sustainable? Balancing operating expenses is crucial, as high costs can erode your profits over time.

    3. Rent Rates

    Comparing the property’s rent rates with similar properties in the area is crucial. Competitive rent rates play a pivotal role in attracting and retaining tenants, ultimately bolstering your ROI.

    4. Tenant Retention Rates

    High tenant retention rates indicate a stable investment. Investigate the property’s tenant history and assess how property management approaches tenant satisfaction.

    5. Lease Terms

    Thoroughly scrutinize the lease terms. Longer lease terms offer stability, but also consider the potential for rent escalations to keep pace with inflation.

    6. Cap Rate

    The capitalization rate (cap rate) is a critical metric in commercial real estate. It measures the ratio between the property’s net operating income (NOI) and its current market value. While a higher cap rate generally signifies a greater potential ROI, remember that other factors, such as tenant quality, lease terms, and market conditions, also come into play.

    7. Net Operating Income (NOI)

    NOI represents the income generated from the property after deducting all operating expenses but before considering debt service or taxes. A robust NOI is fundamental for ensuring a healthy cash flow.

    8. Cash Flow

    Positive cash flow is the lifeblood of real estate investments. Verify that the property generates sufficient income to cover all expenses while leaving room for profit.

    9. Capital Expenditures

    Consider potential capital expenditures, like roof repairs or HVAC upgrades. These costs can significantly affect ROI, so incorporate them into your evaluation.

    10. Property Management

    Evaluate the quality of property management. Effective management can enhance tenant retention rates and minimize operational issues, contributing to a more stable and profitable investment.

    11. Investment Portfolio

    Investment PortfolioAssess how a Triple Net Lease investment fits into your broader investment portfolio. Diversification is key to managing risk effectively. Note that NNN investments can be owned by individuals, partnerships, and various entities, not exclusively associated with Real Estate Investment Trusts (REITs).

    In addition to retail Single Tenant Net Lease (STNL) properties, it’s essential to recognize that NNN investments encompass a wider range, including multi-tenant retail, office, and industrial properties. Therefore, you have the opportunity to diversify your real estate portfolio beyond the retail segment.

    Securing Your NNN Success

    Evaluating Triple Net Lease investments for maximum ROI involves careful consideration of net lease payments, operating expenses, rent rates, tenant retention rates, lease terms, cap rates, NOI, cash flow, capital expenditures, property management, and its place in your overall investment portfolio. By focusing on these key factors and remaining mindful of the broader NNN investment landscape, you can build a diversified real estate portfolio that generates a steady and reliable income stream.

    Adapting Casual Dining to Evolving Consumer Dining Habits

    Casual dining has long been a staple of the foodservice industry, offering a relaxed yet enjoyable dining experience. However, as consumer dining habits evolve, so must the casual dining landscape. This article explores the dynamic changes and adaptations within casual dining restaurants, highlighting how brands are successfully catering to the shifting preferences of modern diners.

    Consumer Dining Habits: The Driving Force of Change

    The world of casual dining is undergoing a significant transformation, driven by shifting consumer behavior and evolving societal trends. In an era of rapid technological advancement, changing preferences and heightened awareness of health and sustainability, restaurants are being forced to adapt in order to remain relevant and appeal to a new generation of diners.

    Adapting Casual Dining: Healthier Menus and Sustainable Practices


    Casual Dining - Evolving Consumer Dining Habits


    Health-consciousness and environmental awareness are driving changes in consumer behavior. Casual dining restaurants are responding by incorporating healthier ingredients and cooking methods into their menus. Locally-sourced, organic, and sustainably-produced ingredients are gaining prominence, as consumers seek out options that align with their values.

    Moreover, restaurants are making efforts to reduce food waste by implementing sustainable practices such as composting, using biodegradable packaging, and minimizing portion sizes. These initiatives not only resonate with environmentally-conscious consumers but also contribute to cost savings for the restaurant

    Industry Leaders Setting the Bar: Noteworthy Initiatives in Casual Dining

    For example, Chipotle Mexican Grill is known for its commitment to using locally sourced ingredients. The company has been praised for its sustainable practices and its focus on healthy eating. 

    Another example is The Cheesecake Factory, which is known for its wide variety of menu items. The company has over 200 items on its menu, including appetizers, salads, pasta dishes, seafood, steak, and desserts. This allows diners to find something to their liking, regardless of their dietary restrictions or preferences.

    Casual Dining Restaurants: Embracing Innovative Concepts

    To meet evolving demands, casual dining restaurants are embracing innovative concepts. From pop-up collaborations with local chefs to immersive dining experiences, these establishments are finding creative ways to engage their patrons beyond the standard dine-in model.

    For instance, some restaurants are offering virtual cooking classes or hosting live music events. Others are creating interactive dining experiences, such as allowing diners to build their own pizzas or salads. These innovative concepts help to create a more memorable and engaging dining experience for customers.

    Food Service Industry Trends: Technology Integration

    Technology is playing a pivotal role in reshaping the casual dining landscape. From online ordering platforms to digital menus and contactless payment options, brands are leveraging technology to enhance the dining experience and provide a seamless process for customers.

    Foodservice Industry Trends: Technology Integration


    Many casual dining restaurants now offer online ordering and delivery services. This allows customers to order food from the comfort of their own homes, without having to wait in line or worry about parking. Additionally, many restaurants are using digital menus to provide customers with more information about the food they are ordering. This can help customers make informed decisions about what to eat.

    Real Estate in Casual Dining

    The success of casual dining also intertwines with the commercial real estate landscape. Net Lease (NNN) properties have emerged as a preferred choice for many casual dining brands. These leases, involving the tenant’s responsibility for property expenses, align with the financial stability sought by real estate investors and free up capital for brands to invest in areas other than real estate. 

    The evolution of casual dining is a testament to the industry’s resilience and adaptability. From menu diversification to technological integration and strategic real estate choices, the transformation is driven by the desire to cater to changing consumer dining habits. As casual dining brands navigate these changes, they pave the way for a new era that promises delightful experiences for diners and viable investments for the commercial real estate sector.

    Is the Micro Coffee Trend Here to Stay or is it a Fad?

    In recent years, the coffee industry has witnessed the rise of micro coffee shops, also known as micro-roasted coffee, catering to a niche market seeking artisanal and unique coffee experiences. With popular brands like Dutch Bros. Coffee, Caribou Coffee Cabins, Scooter Coffee, and 7 Brew leading the charge, it is evident that the trend has captured the attention of coffee enthusiasts. 

    However, the question remains: is the micro coffee trend here to stay, or is it just another passing fad? In this article, we will delve into the world of micro coffee shops and their impact on the specialty coffee market.

    Micro Brew Coffee ShopsMicro Coffee Shops: The New Kid on the Block

    Micro coffee shops are defined by their unwavering focus on quality, craftsmanship, and delivering a personalized coffee experience. These establishments stand out by sourcing their coffee beans from specific regions, often emphasizing fair trade and sustainable practices. What truly sets them apart is the art of micro-roasting. By roasting in small batches, micro coffee shops can meticulously attend to every detail, resulting in a flavor profile that distinctly differs from mass-produced coffee. 

    The benefits of the physical size of micro coffee shops also play a significant role. As highlighted in articles like Change Is Brewing: The Future of the Physical Coffee Shop, smaller, more intimate spaces allow for personalized interactions between baristas and customers, enhancing the overall coffee experience. This emphasis on a cozy and intimate environment fosters a sense of community, setting micro coffee shops apart from the larger, impersonal chains. 

    For example, by intentionally reducing their physical space in the real estate and streamlining their products, brands, like Blank Street Coffee, are able to provide a small selection of high-quality options at an affordable price. Blank Street Coffee has established over 40 mini-cafes, with none exceeding 350 square feet in size.

    The Paradigm Shift in the Specialty Coffee Market

    The surge of micro coffee shops has ignited a significant shift within the specialty coffee market. Modern coffee enthusiasts are no longer satisfied with mere caffeine fixes; they crave an authentic coffee journey enriched with unique flavor notes and innovative brewing techniques. In response, traditional coffee giants have begun integrating micro-roasted blends and artisanal offerings into their menus, acknowledging the evolving demands of consumers.

    Embracing the Convenience: Micro Coffee on the Move

    One of the driving forces behind the popularity of micro coffee shops is their exceptional convenience. Many micro coffee brands, like Scooter Coffee, have embraced a mobile approach, strategically setting up shop in unexpected locations to cater to coffee lovers on the go. This shift towards convenient coffee aligns perfectly with the fast-paced lifestyles of modern consumers, making micro coffee an accessible and appealing choice.

    Drive Thru Micro Coffee

    The convenience factor is underscored in the Coffee & Convenience article, revealing that drive-thru coffee shops make a significant difference among today’s consumers. The speed and ease of drive-thru service caters to the demands of busy individuals, enabling them to savor high-quality coffee without disrupting their schedules. 

    Brands like PJ’s Coffee saw their drive-thru locations average 53.4% more revenue than locations without a drive-thru, and drive-thru purchases made up 65% of their total sales overall at drive-thru enabled locations in 2020. That’s some solid proof there!

    Dutch Bros. Coffee: Leading the Expansion

    Dutch Bros. Coffee, a pioneering figure in the micro coffee movement, has rapidly expanded its footprint with drive-thru coffee stands emerging across the nation. Their remarkable success has inspired other micro coffee brands to explore expansion opportunities, underscoring the growing demand for handcrafted, high-quality coffee experiences.

    Real Estate Dynamics: NNN Leases and Micro Coffee

    The escalating popularity of micro coffee shops has even sparked interest in the commercial real estate (CRE) market. Triple net leases (NNN) have become an enticing option for both micro coffee shop owners and investors. These leases transfer numerous expenses, including property taxes and maintenance costs, to tenants, making them an attractive prospect for those seeking investment opportunities within the specialty coffee realm.

    The Verdict: A Lasting Impact

    Micro Coffee ShopsConsidering the surge of micro coffee shops, their impact on the specialty coffee market, and their synergy with the commercial real estate sector, it becomes evident that the micro coffee trend transcends a fleeting fad. As more coffee enthusiasts yearn for distinctive experiences and flavors, micro coffee shops are poised to remain and continue shaping the coffee industry in the foreseeable future.

    Embracing the Future: The Enduring Legacy

    The micro coffee trend, characterized by micro-roasted coffee and convenient coffee shops, has etched a unique space within the specialty coffee market. Renowned brands like Dutch Bros. Coffee, Caribou Coffee Cabins, Scooter Coffee, and 7 Brew have not only introduced new flavor dimensions but have also revolutionized the coffee experience itself.

    Moving forward, it is undeniable that the micro coffee trend is far more than a passing fad. Its robust presence in the specialty coffee market and its allure for commercial real estate investors signify that micro coffee shops are destined for continuous growth and triumph. If you haven’t yet embraced the micro coffee movement, now is the time to embark on this aromatic journey and uncover the plethora of flavors that await you.

    Everything to Know About Commercial Appraisals

    Commercial appraisals are necessary because, in most cases, the buyer and seller are working towards different outcomes. The buyer wants to pay less, while the seller is looking for the opposite effect – to have the price be as high as possible. This is where a commercial appraisal comes in as the third party that determines the “fair market value” for the commercial property being sold.

    The appraiser is called upon to perform market research and come back with an independent value. This fair market value is then used by both the buyer and seller in the transaction for negotiation purposes, as it is considered the generally agreed-upon current value of the property. This makes the fair market value an important part of any commercial appraisal.

    In this Brisky blog, we describe what commercial appraisals are, when they are needed, and how they can help. Keep reading to learn more!

    What Are Commercial Appraisals?

    “Commercial appraisals are the independent assessment of the value of a commercial property. This property could be anything from land to garages to warehouses, multifamily homes, or office buildings.”

    Commercial appraisals are performed by the ‘appraiser’ who goes through significant training to learn the rules and practices required to complete an appraisal report accurately and correctly. This type of appraisal is used in many real estate transactions, such as when a property is being sold, refinanced, or insured.

    When Are Commercial Appraisals Necessary?

    When Buying or Selling a Commercial Property:

    If you are buying or selling a commercial property, a commercial appraisal can help you determine the fair market value of the property, which can in turn help you negotiate a fair price and avoid overpaying or underpricing the property.

    When Financing a Commercial Property:

    If you are looking for financing, like a mortgage or a loan, potential lenders will likely require a commercial appraisal to determine the value of the property. This helps the lender assess the risk of the loan as well as determine the correct loan amount.

    For Tax Assessment Purposes:

    If you are a property owner, a commercial appraisal can help you assess the value of your own property for tax purposes. This can help you check that you are paying the correct amount of property taxes, so you aren’t hit with a big bill during tax season.

    For Insurance Purposes:

    If you are insuring a commercial property, an appraisal will help you have a more concrete idea of the replacement value of the property. Knowing the accurate value of the property will ensure that your insurance coverage is enough, in case of damage or loss.

    Overall, getting a commercial appraisal can provide you with valuable information about the value of your property, which can help you make informed decisions about buying, selling, financing, insuring, or planning your estate.

    Most Important Things to Know About Commercial Appraisals

    • The fair market value is based on several factors, such as the commercial property’s location, condition, size, recent sales, the market, and potential income.
    • While the process of a commercial appraisal typically involves a physical inspection of the property, it goes much deeper than that, as the research for the local real estate market can drastically change the valuation. In addition, an analysis of comparable properties that have recently sold can also affect the appraised value. The appraiser synthesizes all the above information and more to calculate the property’s value.
    • Commercial appraisals are governed by industry standards set by organizations such as the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP). These standards ensure that appraisals are conducted in a consistent and ethical manner. Commercial appraisers must be licensed or certified by their state, and they typically have a degree in real estate, finance, or a related field. They also undergo continuing education to maintain these credentials.


    Commercial Appraisal Approaches

    The Cost Approach

    The cost approach assumes that the price a buyer is willing to pay for a property equals the cost it would take to build an equivalent property. So, to arrive at a value, the appraiser looks at the time and materials used to construct an investment property and estimates the cost (using market knowledge and available data).

    The cost approach is often the most used and effective for new properties because the reproduction cost should be similar. However, this is less effective for older properties or that cannot feasibly be replicated in modern times.

    The Income Approach

    The income approach is the same as above; however, the value of the commercial property is determined by the amount of income it generates. To estimate this, the appraiser reviews cash flow like past financial statements, current rent, leases, operating expenses, and market conditions.

    The main benefit of this approach is that it can be used across property types and is relatively simple. The downside is that relying on historical financial accuracy can be challenging, and it may require assumptions about things like rent, expense growth, the future of the market, and vacancy rates.

    The Sales Comparison Approach

    The sales comparison approach is just as it sounds – that the property’s value is derived from the sales of comparable properties in the same market.

    However, it can be difficult to find commercial properties in the same market that are truly comparable or even similar, as location, renters, and slight differences in size, use, or design, can cause drastic changes in value.

    Partner With Brisky Net Lease for Your Next Commercial Real Estate Investment

    For help finding the perfect NNN investment property, get in touch with the professionals at Brisky Net Lease. Our experienced, professional team can identify the best properties in the best locations — helping you meet your investment goals.

    With our extensive commercial real estate track record, you’ll walk into your next lease negotiation confidently and with an experienced team on your side.

    Contact us today to learn more about our available properties and buyer representation services.

    Everything You Need to Know About Net Lease Retail, Interest Rates & Pricing Resets

    When inflation rates started rising in April 2022, consumers worldwide felt the impact of increased energy, goods, and service costs. As it stands, the U.S. faces one of the highest inflation rates in decades.

    When price fluctuations begin to affect our daily lives, informing yourself about potential alternative income sources can have a huge impact on financial security. Plus, knowing simple investment concepts like net leases, interest rates, and pricing resets can help you make educated decisions on which investment methods and timing are right for you.

    In this blog, we’ll break down everything you need to know about net-lease retail, interest rates, and pricing resets, plus, how Brisky can help find the right CRE investment for you and your finances.

    What Is a Net Lease?

    The term “net lease” describes a rental arrangement where a tenant is responsible for expenses other than just the monthly rent, like property taxes, insurance premiums, and routine maintenance. Net leases are extremely common in commercial real estate, and one of the most favorable to investors.

    The Basics of Net Leases

    In order to fully comply with a net lease’s terms, the renter is responsible for all property-related costs, just as if they were the owner.

    Utilities, maintenance, repair charges, and other operational expenditures may be included in the agreement. Since net leases incur more expenses, most landlords are willing to take lower monthly payments for this type of lease.

    If you’re the property owner or landlord, you don’t have to worry about most operations-related monetary responsibilities. On the other hand, tenants can negotiate lower lease rates in exchange for other expenses they take on from the property owner.

    Why Should We Care About Interest Rates?

    Interest is the cost associated with borrowing money and one of the most important aspects of the American economic system.

    Interest rates influence the cost of borrowing, cost of goods, the return on savings, and are a large part of the total return of most investments. Certain interest rates can also provide insight into future economic and financial market activity.

    How do Interest Rates Work?

    Interest rates are applicable to the vast majority of financial dealings. Borrowers pay interest as a fee for the use of money from a lender or for delayed payments for a debt. The interest amount depends on the agreed rate, which is why interest rates are sometimes called the “cost of money.” Depending on the interest rate, borrowing the same amount of money can be more or less expensive for the loanee.

    In the case of loans, interest is calculated by multiplying the principal by the applicable interest rate.

    How Are Interest Rates Determined?

    Interest rates are influenced by several factors, including the economy’s health and the supply and demand for loans and credit.

    Central banks will raise or lower short-term interest rates to ensure stability and liquidity in the economy, while long-term interest rates are affected by the demand for 10- and 30-year U.S. Treasury notes.

    When the government raises interest rates, it increases the cost of borrowing money. As a result, consumers have less disposable income to put toward discretionary purchases when interest rates are high. When interest rates are low, both consumers and businesses benefit from the increased borrowing and spending.

    What Is a Reset Rate?

    Interest on the principle of a variable-rate loan is calculated on the loan reset date at a rate known as the “reset rate.” The loan terms, including the reset conditions and interest rate computations, should be clearly laid out in the credit agreement between the lender and the borrower.

    Any loan with a varying interest rate can have a reset rate attached to it. When the underlying benchmark interest rate or index changes, the loan’s interest rate will also vary, making it a variable-rate loan.

    Investment Services You Need

    Our goal at Brisky Net Lease is to be your one-stop shop for all things related to NNN investment properties. We know our way around the national NNN investment environment and can help you find the perfect property for your next commercial real estate investment.

    We put a lot of time and effort into underwriting, property evaluation, and education, keeping our clients informed and in tune throughout their investment journey.

    To learn more about the various CRE investment services we offer, get in touch with our team!

    Your Guide to Real Estate Investing for the Rest of 2022

    The current state of the real estate market in the US is very healthy. Home prices are increasing, many businesses are seeing growth in their customer base, and there is a high demand from buyers and tenants alike. These situations have led to a sellers’ market both for homeowners and many commercial industries.

    As residential real estate can often be looked at as an indicator for other real estate branches, a seller’s market nods toward continued industry strength for the remainder of 2022. In fact, industry watchers expect the annual home value to continue increasing and reach a peak level of around 22 percent in late May. As current housing inventory remains low, home values are also expected to increase in the coming months. With this, it’s firmly assumed that 2022 will follow the 2021 trend of a strong housing market.

    Trends in Real Estate Investing in 2022

    With the housing market continuing to stay strong, investors can look forward to taking advantage of market conditions. Here are a few trends to watch in the real estate market in 2022.

    Cap Rates Will Hold Steady

    Cap rates will remain steady as asset prices increase due to increased demand. The stability will continue as long-term interest rates increase slightly. The first half of the year will see a higher all-property average cap rate than the 10-year Treasury yield.

    Rents will also increase, supporting the net operating income (NOI) of many asset types. Even though real estate rates can influence cap rates, NOI expectations have a more significant short-term impact.

    Alternative Lenders Will Drive the Debt Market

    With many commercial mortgage banks cautious when dealing with the commercial real estate (CRE) market, non-bank lenders have entered the picture. These alternative lenders increased their activities by connecting with borrowers looking for bridge loans. These activities will drive the debt market in 2022.

    Investment Volumes Will See Pre-Pandemic Levels

    Industry experts expect the total investment volume for 2022 to surpass 2021 levels by five to ten percent. The 2022 investment volume is around the same level as 2019, which was a record year.

    Multi-family and industrial assets continue their popularity among investors. But retail and office assets will also attract the attention of investors. Increases in investment volumes will reach 15 percent, depending on the asset.

    It Will Be a Good Year for Capital Markets

    Stable cap rates and liquidity will drive investment activity in 2022. Returns will also increase with the growth of NOI and appreciation of asset values. These positive developments come as economic conditions continue to improve. Even with the potential threat of the virus, industry watchers do not expect it to affect their positive outlook significantly.

    There’s a Positive Outlook for 2022!

    Even with the continuing uncertainty in the market, real estate industry watchers have a positive outlook for 2022. They expect total investment volumes by at least five percent compared to 2021. The economy will also continue to improve and spur investor confidence and improvements in property market fundamentals.

    With the current state of the real estate market in the US being very healthy, it is expected to stay that way for at least another year. The next few years will be suitable for investors as cap rates hold steady and rents continue to rise.

    If you’re looking for help with your commercial real estate investments, consult the experts at Brisky Net Lease.

    How Commercial Real Estate Can Protect Against Inflation

    A report by the Bureau of Labor Statistics reveals that the consumer price index rose by 7% in December, the eighth consecutive month in which the inflation rate is greater than 5%. Economists say that these numbers will continue to rise in 2022.

    As commodity prices increase with inflation, so do real estate prices. Property investors must ensure that their assets yield higher returns than the current or predicted inflation rate in such scenarios.

    Commercial real estate (CRE) investments surged in popularity for this reason. Its consistent cash flow provides investors a good hedge against inflation, and this article explains how.

    Rental Income Increases with Inflation

    As established, rising inflation leads to rising prices – this includes rental rates for commercial properties. An increase in rental rate will hold positive value for CREs as long as operating expenses remain constant.

    Moreover, as net operating income increases, the property value will follow suit. As long as this value outpaces the inflation rate, the investment will not be eroded while holding CRE assets.

    CRE Leases Ensure Regular Rent Increase

    To protect against inflation, CRE leases warrant an annual rent increase. For instance, a lease agreement could call for a 2% to 3% increase in rental rate per year. The increase is usually tied to a third-party variable like the CPI – as the index rises so will your rent and income.

    As long as the increase is higher than the current inflation rate, returns will remain positive on a relative basis.

    Property Scarcity Equals Price Increase

    As more properties are built to meet the increasing demand of the real estate market, scarcity of space becomes more evident. High demand and limited supply equate to the appreciation of real estate value, something that investors look forward to.

    And as long as the price increase outpaces the inflation rate, the return on investment stays positive.

    How to Start Investing in Commercial Real Estate

    If you want to dabble in commercial real estate, there are three ways that you can start:

    Buy Real Estate Investment Trusts (REITs)

    REITs are companies that buy, manage, or finance income-generating real estate. They lease spaces then distribute the rental income as dividends to shareholders. The downside to this is that you can’t choose the individual assets you’re investing in.

    Fractional Ownership

    Fractional ownership makes investing in high-value properties more affordable. This method involves selling shares of the asset to multiple investors. The shareholders will then benefit equally from the property, with income sharing, usage rights, and priority access.

    This can be an excellent way to diversify your portfolio. Plus, you can choose the property or properties that you want to invest in.

    Direct Buying of Commercial Real Estate

    You also have the option to purchase CREs directly. However, this may not be ideal for rookie investors as it can require in-depth market knowledge. Plus, you’ll be handling all aspects of the investment, from legalities to operational charges.

    Make the Most Out of Your CRE Investment

    Navigating the real estate market can be overwhelming, but it doesn’t have to be with help from the experts at Brisky Net Lease!

    Our extensive knowledge of triple-lease and investment properties enables us to identify the best buy and sell opportunities for you! Gain access to premier real estate listings and get in touch with us today to learn more about our services.

    2022 Trends in Retail & Commercial Real Estate

    Early signs for the retail industry are already showing indicators of what may be to come in 2022 for commercial real estate. From a decrease in store closures across retail (down 65% compared to last year) to an increase in store openings (up 3% from last year), there is a lot to look forward to, and hopefully, these trends will continue, bolstered by strong consumer demand.

    Here are just a few of the trends to watch in 2022 in retail and commercial real estate:

    Better Relationships Between Companies & Their Workforce

    Finding workers in the past year was difficult for many retailers – from warehouse workers to floor workers to delivery drivers – however, this has pushed for better relationships, communication, and benefits from many companies to their workforce.

    Though higher wages are helpful and a good draw for many workers, improving the company’s overall connection with the faces and hands of the business has shown to often be the difference between understaffing and a smooth schedule.

    If finding labor continues to be difficult, then many retailers may need to find additional perks and creative solutions to bring in workers – or to find new locations and solutions that have better automation or technology for serving customers with fewer workers.

    More Investment & Expansion of Supply Chains

    As the last year has clearly shown, supply chain disruptions can have a huge impact on businesses, profits, and commerce in general. From labor shortages to demand surges and other unforeseen variables, many retailers had a difficult time keeping up with their shelves and their customers’ needs.

    Even the simple movement of items came to a standstill multiple times in 2021, though that congestion is expected to continue to lessen throughout 2022.

    The problems of last year gave insight for this year and beyond, meaning many companies are re-evaluating and considering investment into supply chains to strengthen them and find more efficient ways to avoid future breakdowns. This will most likely look like an upgrade to technology, which goes hand-in-hand with multiple trends, and possibly an increase in logistics companies – both brick and mortar and online.

    Evolving Experiences & Locations

    eCommerce is still growing, and many of the ‘traditional’ department stores are still declining, however, some largely physical retailers have found ways around this – namely, involving experiences and smaller locations that cater to specific needs and neighborhoods.

    As mentioned, closures are dropping, and new store openings are increasing, which is great for retail and commercial real estate industries alike. Many retailers are also rethinking their store layouts, styles, experiences, and locations. Opting for smaller, neighborhood-centric locations instead of big box stores.

    Additionally, with so many new store locations opening – dollar stores leading this front – there is a move toward revitalizing brands that have previously been in decline, instead of closing them down. This means that both real estate and construction may be in for beneficial surges depending on the locations chosen for the thousands of new stores with plans for grand openings, relocations, and renovations.

    Retailers Are Branching Out from Being Strictly ‘Retail’

    Many retailers are offering business-to-business services, delivery services, even resale-as-a-service in addition to traditional retail services.

    One great example is Amazon, which has begun to sell its cashier-less tech to other retailers, so customers can check themselves out without waiting, lines, or contact with workers – which during a pandemic is a large draw for many.

    This kind of technology can help customers but also speed, and assist the overwhelmed workforce if implemented correctly and efficiently.

    Apparel May Be Making its Long-Awaited Comeback in Commercial Real Estate

    Apparel has been falling for years, however, 2021 saw a large increase in revenue – $13.3 million more than 2019, nearly 10%!

    Holidays always see a surge in apparel sales, however, this trend doesn’t seem to be changing quickly, though a gradual decline after the holidays season is expected. Many retailers kept their prices consistent through the holidays, however, some cut big deals to lure more customers, which could hurt them over the remainder of the year.

    This means there may be additional movement from large commercial real estate properties to smaller but more numerous locations, such as strip malls instead of megamalls.

    Make the Move into Commercial Real Estate & NNN Investment

    Brisky Net Lease aims to be your comprehensive partner for NNN investment commercial real estate. We have extensive experience in investment properties for sale, retail properties for sale, and navigating the national investment landscape successfully.

    Brisky Net Lease is an industry expert in every aspect of NNN properties for investment, retail, and commercial real estate. If you are interested in investing in NNN properties, contact our friendly team of knowledgeable experts. Our team would be happy to answer your questions and provide you with options.

    SOLD! NNN Daycare | Twin Cities MSA

    Brisky Net Lease represented an institutional buyer in the sale of an absolute NNN Learning Care Group in the Twin Cities MSA. The single tenant daycare offered the buyer a solid investment opportunity in a fantastic market with great demographics and strong population growth. 

    About Learning Care Group:

    Learning Care Group, Inc. is the second-largest for-profit child care provider in North America with more that 950 schools across the country and around the world. Their programs are designed for children aged 6 weeks to 12 years. Across their 10 unique brands, they are committed to creating state-of-the-art facilities with the latest technology and expert-driven curricula created by their own Education team.

    SOLD! Net Lease Goodwill

    Brisky Net Lease represented the seller in the sale of this net lease Goodwill in Sheboygan, WI.

    The single tenant retail building featured newer construction, high square footage, and an excellent location just off Highway 43.

    About Goodwill:
    Local Goodwill organizations are innovative and sustainable social enterprises that create job training programs, employment placement and other community-based programs by selling donated clothing and household items in more than 3,300 Goodwill stores (North America) and online at® and other e-commerce platforms.