NNN Showdown

Compparing single-tenannt NNN leases in Austin and San Antonio, buyers are seeing cap rates ranging from 5-7%. However, lenders' differing underwriting approaches are impacting deal viability. In Ausstin, life insurance companies are offering more aggressive loan terms, while in San Antonio, regional banks are taking a more conservative stance. This discrepancy is causing buyers to walk away from deals in San Antonio due to lower loan proceeds. Mixed-use properties in both markets are seeing higher cap rates, around 8-10%, but buyers are wary of addded management complexity. Ultimately, the choice between single-tenant NNN and mixed-use comes down to buyer risk tolerance and desired ROI.