Envoy's Ralph Cram will present to the Shanghai CFA Society on Investment Opportunities in the U.S. Net Lease Real Estate Market.
Asian real estate investment in the United States is thriving. According to the U.S.-based National Association of Realtors, Chinese nationals nearly doubled their investment in U.S. real estate from US$8.2 billion in 2012 to US$14 billion in 2013.
As Asian investors and their wealth advisors look to invest in the U.S., they should consider the U.S. Net Lease Market for capital preservation, appreciation, current income and liquidity. Net lease properties are single tenant properties where the tenant’s initial lease term is a minimum of 10 years and it pays all property-related expenses. The landlord receives a monthly rent payment, net expenses, without any management headaches.
In 2013, nearly 50,000 net lease transactions occurred within the U.S. totaling in excess of US$103 billion. While many net lease transactions are larger than US$25 million, the average investment size in 2013 was US$2.1 million. This real estate investment is accessible to a majority of high-net-worth investors for direct investment.
This market has been growing in popularity in recent years as foreign investors, especially from Latin America and now Asia, have become major acquirers of net lease properties as a wealth preservation strategy.
Mr. Cram’s talk will focus on the U.S. Net Lease Market and the opportunities and methods of investing in this market, as well as how investors and their advisors can use net lease properties as an estate planning tool.