Net Takeaways with Feller, Harf, and Team
March 2025 Market Commentary Written by: BJ Feller | Senior Vice President & Managing Director | bfeller@northmarq.com
NNN Insights by Bryn Feller
UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT
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Why Walmart’s Earnings Matter for Developers & Institutional Owners Walmart is the most powerful economic indicator that isn’t on the Fed’s dashboard. If middle America is struggling, Walmart knows before anyone else. And their latest earnings? A study in adaptation. •Grocery is carrying the business. People still need to eat. •Discretionary spending? Weak. Not great news for apparel-heavy retail landlords. •E-commerce is their secret weapon. If you don’t have a tenant with an omnichannel strategy, start asking harder questions. For net lease, this means: •Grocery-anchored retail is still king. •Retailers selling wants over needs are feeling the squeeze. •If your tenant roster leans into discretionary, start stress testing those renewal assumptions. Final Takeaways: What the Smart Money is Doing Now In times like this, capital flows toward quality and certainty—and that’s exactly what’s happening in net lease. •Top-tier locations, credit tenants, long leases? They still trade. •Second-tier assets? Liquidity is drying up. Sellers: If your asset isn’t A+ caliber, the market isn’t going to reward you for just being “realistic.” The only thing that’s moving are deals that check every box. Buyers: If you’re waiting for asking cap rates to climb much higher, you might be waiting a while. The data shows that sellers are holding firm—rather than lowering prices, they’re pulling higher-cap deals from the market. As a result, the inventory that’s actually available is skewing more aggressively priced. This market isn’t about patience. It’s about positioning. If you’re on the right side of the bifurcation, you’re winning. If you’re not—you’re waiting. LET’S TALK.
Mark Lovering Associate Vice President mlovering@northmarq. com
Isaiah Harf Regional Managing Director iharf@northmarq.com
BJ Feller Senior Vice President & Managing Director bfeller@northmarq.com
Christian Tremblay Vice President ctremblay@northmarq.com
Blaise Bennett Associate Vice President bbennett@northmarq.com
Josh Dicker Senior Associate jdicker@northmarq.com
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