An action-packed week finished off our April here at Brisky Net Lease. Hope you and yours had an excellent week and weekend as well!
Lots of ongoing dialogue with our institutional clients about the NNN climate out there. On average, rent collections have been better than most expected. A few disappointing tenants in the mix, but that’s to be expected. I’m referring to the groups with the means to pay that are using this situation as a reason to negotiate. I can understand that everyone is hurting, and sometimes it’s difficult to know exactly the right position to take.
There was a decline in PPP discussions last week. I feel like the groups who got them are planning ahead for what the next 30-60-90 days looks like.
A topic important for us. We are all working remotely, yet as a team we’re trying to plan out how the next 12 months looks at our office. Lots of open dialogue, new ideas, and a few trial runs will all be parts of our future. We’re up for the challenge and plan to be smart about our next steps. Stay tuned.
We had a nice Tractor Supply closing this past week. While we work nationwide, we ended up closing a TSC deal rather close to home in Spooner, WI. We brought a 1031 buyer and developer seller together for a nice transaction. I feel very strongly about the success of this store. It was also nice to see the Shopko backfilled and retail jobs preserved for Spooner.
Deal flow remains steady with DG. We have access to about another 10 off market assets throughout the US. Always happy to have a confidential conversation about opportunities that could meet your criteria.
Single Tenant / Corp HQ / Office Assets:
We have underwritten a few “excellent credit” office assets during the past week or so. Interesting off market opportunities at this point. Let’s see if investors will have an appetite for short to mid-term deals with higher yield. I believe some will consider it as an attempt to offset some rent loss. Look for more detail in the upcoming weeks.
We have seen an uptick in activity for restaurant deals. We will be adding additional opportunities to our listing board in May. Both fully leased, as well as owner user opportunities. With the latter, proven restaurant locations just looking for better operators.
Thoughts to Consider
To wear a mask or not wear a mask. Locally, we saw home improvement chain Menards implement a policy where all employees must wear masks, as well as all incoming customers. And, for those who don’t have a mask, Menards will sell you one for $1. I thought it was a nice program implemented by a sizable company. We’ll see how it all plays out and if other companies follow suit with some of these mandates.
I’ve been struggling to figure out what my future fitness routine will look like. I’ve never been a “big gym” member, but rather a boutique fitness fan, as well as a regular at my NE Mpls apt “on property” gym. As I inch back into public fitness, I have a few thoughts and hopes of what gyms might do to make things safe.
1. Implement safe occupancy levels. Reduced of course and perhaps on a reserved basis if that’s practical.
2. Implement increased spacing for machines. Space them out!!
3. Increase cleaning and wipe stations and have mandated policies requiring cleaning by everyone before and after using machines. Let’s double it up!
4. Maximum of 1 person at a time using the free weights, and wipe downs before and after everyone’s use.
Just a few thoughts from my own experience. Let’s see how these gyms do it over the upcoming weeks. I believe the companies that communicate very well, with tons of transparency will outlast the rest, but time will tell.
Hope you all have a great week!