Why the Real Estate Matters in Net Lease Investing

Aug 28, 2025

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Elevated market volatility and a slowing economy favor net lease investments that are characterized by durable, long-term cashflows with fixed escalations in sectors and assets that are generally less sensitive to the cyclical economy. However, given heightened credit risk with some tenants who may struggle to absorb higher input costs from tariffs, it is critical that investors truly understand the residual value of the underlying real estate in addition to the credit of the tenant in assessing the attractiveness of a net lease investment.

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Morgan Stanley Real Estate Investing

Morgan Stanley Real Estate Investing (MSREI) manages global value-add / opportunistic and regional core / core-plus real estate investment strategies. The team's experience encompasses a broad array of asset classes, geographic regions and investment themes across all phases of the real estate cycle.

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Why the Real Estate Matters in Net Lease Investing

Elevated market volatility and a slowing economy favor net lease investments. However, it is critical that investors truly understand the residual value of the underlying real estate and the credit of the tenant in assessing the attractiveness of a net lease investment.

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