Why Guardian Is Bullish on Single-Tenant Net Lease

John Halvorson

Guardian Advisory is bullish on the single-tenant net lease market. The firm launched its first single-tenant net lease-focused fund earlier this month, targeting a $50 million fund raise, and says that the asset class has historically low volatility and offers investors a passive management style. In today’s environment, single-tenant assets are also offering competitive yields compared to other asset classes.

“Single-tenant net lease properties is a market with historically low volatility that appeals to investors seeking passive investments,” John Halvorson, a principal at Guardian Advisory, tells GlobeSt.com. “For example, for properties targeted by the Guardian Net Lease Fund I, tenants are responsible for all physical maintenance of the properties, including structure, roof, HVAC, and parking, as well as property taxes and utilities. This level of certainty of net cash flow and low levels of deferred maintenance results in low volatility for property valuations found with these properties.”