Why are institutions pouring billions into an asset class others are doubting?

In this episode of What’s In Store, Chris Ressa and Karly Iacono break down one of the most resilient yet often misunderstood corners of commercial real estate: net lease. While headlines focus on retail closures or shifting tenant dynamics, the reality is that net lease portfolios are performing at an extraordinary level, with occupancy rates consistently between 98 and 99 percent. This asset class is attracting serious institutional capital, and its structure creates predictable long-term income streams, and replacement costs and tenant “stickiness” make these properties so durable.

They also tackle misconceptions—explaining why recent cap rate movements and financing challenges haven’t diminished the underlying value of well-located, freestanding real estate. With creative financing and strategic positioning, today’s market offers investors a rare window to buy below replacement cost while securing stable returns. Whether you’re an active investor, a retail real estate professional, or simply curious about how “mailbox money” really works, this episode delivers a clear-eyed look at why net lease is a powerful and timely opportunity.

What you'll hear:

• Why net lease portfolios are maintaining 98–99% occupancy
• How long-term leases provide durability and predictable income
• The role of replacement cost in strengthening asset value
• Why tenant “stickiness” adds security to investments
• The growing appetite from institutional investors
• How rising cap rates and high financing costs create opportunity
• Strategies for investors navigating today’s market

Chapters

00:00 Introduction to Net Lease Opportunities

03:01 Understanding Occupancy Rates in Net Lease REITs

05:55 The Durability of Income in Net Lease Investments

08:47 Institutional Interest in Net Lease Properties

12:09 Market Trends and Future Predictions for Net Lease

14:59 Investment Strategies in Net Lease Real Estate