PRO Perspective: The Texas Net Lease Market

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Our August 5th PRO Perspective features Branson Blackburn, Vincent Knipp, and Landan Dory discussing Texas’ current net lease market.

Crexi’s PRO Perspective series explores various aspects of the commercial real estate industry in conversation with some of the top CRE professionals in the industry. In each episode, we feature different guests to tap into their wealth of CRE expertise and explore the latest trends and updates from the world of commercial real estate. 

In this episode, Crexi’s Kyla Dickman and Yannis Papadakis join Branson, Vincent, and Landan in a thorough examination of the Texas commercial real estate market, specifically in the realm of net leases.

What are net leases?

Net leases refer to an agreement between landlord and tenant of a property, where the tenant agrees to pay a portion of all taxes, insurance costs, and maintenance fees for a property as a part of the total rent. In a net lease, the tenant is expected to manage all costs of maintaining the property, as though the tenant were the property’s owner.

Key Takeaways

  • A large portion of buyers are out-of-state investors from Florida and California: those enamored with Texas’ commercial real estate market and see it as a solid investment opportunity.
  • Texas-focused buyers pay close attention to cap rates, the fundamentals of particular assets, and available credit when determining options in urban, rural, secondary, and tertiary markets.
  • Cap rate compressions are more affected by the tenants themselves than where an asset is located, particularly amid COVID-19.
  • Texas’ CRE market is still strong, thanks to its business-friendly regulations, high-ranking domestic population and migration, and massive GDP. 
  • As more people arrive in Texas, there’s a higher demand for every asset class and type of business to support that growth.

Check out the episode here:

About Branson Blackburn:

Branson Blackburn is President and Cofounder of Trinity Real Estate Investment Services, a Texas-based commercial real estate brokerage firm specializing in investment sales for single-tenant net lease properties. In his current role, Branson serves Trinity REIS with over $600M in closed deal valuations and experience in both client advisory & brokerage services on behalf of institutions, developers, & private clients involved in single-tenant, net lease transactions. 

Branson began his commercial real estate career at Noble Crest Property Group in 2011, specializing in multifamily investment sales. In 2013, the company evolved into KW Net Lease Advisors, and Branson began specializing in single tenant net lease properties in Texas, eventually growing his clientele nationwide. In 2017, Branson and his partners founded Trinity Real Estate Investment Services and established operations in Fort Worth, Texas.

Branson earned his Bachelor’s in Marketing from Abilene Christian University.

About Vincent Knipp:

Vincent Knipp is a Senior Managing Director of Investments in Marcus & Millichap’s Dallas office, where he specializes in net lease investment sales across the United States.  Knipp started his career in the Fort Worth office under the firm’s renowned Sales Intern Program in 2007 and became a full-time agent in 2008.  In less than two years, he was recognized as the Top Closer in the Fort Worth office and the Top Producer across all product types in 2010.  

To better serve his clients, Knipp transitioned to the firm’s Dallas office in 2016, where he focused on self-improvement and the development of other team members. Since then, Knipp has been the #1 Net Lease Agent in Texas and consistently ranks in the Top 10 Nationally within Marcus & Millichap’s National Retail Group. Throughout his career, he has closed more than 350 transactions totaling nearly $1 billion in volume in 29 states.

About Landan Dory:

Landan Dory serves as Vice President in Avison Young’s Austin office as a specialist in single-tenant net lease acquisitions and dispositions. He provides a wealth of experience and advisory expertise to clients with projects of all sizes on a nationwide basis. Landan began at Marcus & Millichap in 2017, quickly rising as a top producer in his region. Since 2018, Landan has been responsible for $30,000,000 in commercial real estate transactions across 14 states. 

Landan attended Baylor University and earned his Bachelor of Business Administration degree in Finance and Corporate Strategy. 

About Crexi:

Crexi is a commercial real estate (CRE) property marketing and deal management platform that combines an active marketplace for sale and lease properties with powerful property marketing, deal management, and market intelligence tools designed to help brokers, buyers, and tenants eliminate time-consuming processes and close deals faster. 

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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