Investors are still hot for net lease properties, and MetroGroup Realty Finance founder Pat Ward tells us that even with uncertainty in the interest-rate environment, there will be plenty of capital available to facilitate larger net leased investments in the next 12 to 24 months. "Portfolio, CMBS and national banks are all geared up to meet existing sales volumes as well as the refinance expansion that we're entering," he says.

The majority of sales were driven by institutional investors in 2014, Pat says, but so far this year, private 1031 exchange investors have driven the volume. "Still, if interest rates rise in the next year, we may see activity, volume and possibly pricing affected," he notes. Recently, OC-based MetroGroup arranged $35M in financing for Oakmont Corp in its acquisition of the 200k SF Broadcom Building in San Jose, which is fully occupied by semiconductor specialist Broadcom.