4. Interest Rate Environment:. Unlike last year, when investor sentiment was buoyed by the expectation of near-term rate cuts to spur deal flow, the 2025 outlook reflects a more tempered reality. The current market consensus suggests that interest rates will remain at or near.

3. Little to No Premium for CA STNL. Investors are applying little to no premium for California-based single-tenant NNN assets. Deals that were previously trading 25–50 bps tighter than out-of-state comps are now being priced equally or even at a discount due to:.Tax implications.

1. Cost Basis is Paramount. Investors are underwriting with a sharper lens on total cost basis, particularly:.Tenant Improvement Allowances (TI) are rising, affecting backfill viability. Ground-up development costs remain elevated due to entitlement risk and material/labor.

I attended ICSC 2025 in Las Vegas, NV. The event hosted over 20,000 people, encompassing investors, developers, lenders, tenants, brokers, and other service providers. Over the two-day event, Matthews™ met with over 1,000 investors and tenants. Here's what my conversations.

The Achilles heal to a value add deal is cost basis. With construction cost still high, value add deals will be slightly hampered.

Inflationary pressure- whether its investors seeking yield or investors concerned with capex/cost to stabilize is a major issue still.

Grand Opening of Dutch Bros in El Cajon, CAs. 801 N 2nd Street, El Cajon . The stack was approximately 1/2 mile long. Mind you this was at 10:30am. @DutchBros is an exceptional operator. We are excited to begin marketing the asset. Please reach out should you have interest.

Proud of my son @marcuslopiccolo for his success on and off the field. Thank you to all his coaches and teammates!.@Daygofootball.

Davis Warren you will never buy a drink again. You just won in Columbus. Go Blue!.

A great execution made possible by a great family (seller) and buyer (Argonaut Investments). Achieving this outcome required navigating property level challenges and a special servicer. The lesson learned is the importance of selecting/qualifying the right buyer. We are very

San Jose del Cabo. Beautiful church. God Bless

Takeaway: The closing was rewarding, but the true value was learning about oneself under pressure. The level of stress I carried impacted myself, my teammates, and most importantly, my wife. What I learned is the importance of those you surround yourself with. I NEVER would have.

Closing: The transaction was to close in 30 days but took 60, filled with challenges like retrades, legal errors, city favors, and client-buyer friction. Stayed calm and focused to close.

New Buyer: Another investor/operator appeared, and we ensured all issues were addressed upfront before accepting the terms, leading to a new deal.

WTF Happened: Cinemark lease issue arose, spooking the buyer and their equity partners. They canceled the deal, returning the money and leaving no options. Devastating.

Escrow: A month before approval, the buyer demanded a 20% retrade due to construction costs. After 3 weeks of silence, we struck a deal before Thanksgiving, set to close in January.

Business Plan: Recommended engaging with an old partner at CBRE to create a lease-up plan. The escrow process was initially smooth but later encountered unforeseen issues.

After 13 weeks of marketing and weekly updates, an acceptable offer came from a high net-worth group in San Diego, which I successfully closed.

Marketing Feedback: Consulted developers interested in the theatre, but the lease economics (build cost, TIA, and rent) were not appealing enough for them to proceed.