Persist to 2026: Why Net Lease Real Estate Is Winning in an Uncertain Market

The commercial real estate recovery everyone expected in 2025 did not arrive. Instead, investors are being forced to rethink risk, cash flow, and capital allocation heading into 2026. In this episode of the Espace Montreal Podcast, Axel Monsaingeon speaks with Marie-Claire Laflamme-Sanders, Senior Vice President and Practice Lead within Avison Young 's Québec Capital Markets Team, about why net lease real estate has become one of the most resilient investment strategies in today's uncertain market. Drawing on insights from the Toronto Real Estate Forum and active transactions across Canada, Marie-Claire explains how investors are pricing stability, why single-tenant assets are back in favor, and how net leases function as a hybrid between real estate and corporate bonds. The conversation also covers the return of interest in office real estate, the rise of sale-leaseback transactions as companies unlock capital, and why Montreal continues to attract both private and institutional investors despite ongoing political and economic headwinds. This episode offers a grounded, real-world look at how sophisticated investors are protecting cash flow and positioning portfolios for the next phase of the cycle. Topics & Timestamps 🎙️ Net lease real estate, and why it matters right now (intro) 01:03 📉 "Survive to 2025" becomes "Persist to 2026" after early-year shocks 01:55 🇨🇦 Market reaction: tariffs, immigration slowdown, and a new operating reality 03:11 ⏸️➡️▶️ Pens were down, now deals are moving again 05:18 🏢 What a net lease is (single tenant, triple net, expenses passed through) 06:51 🛡️ Why net lease wins in volatility: stability, inflation protection, bond-like cash flow 07:28 📈 Why demand for net lease increased in the last 12–18 months 09:04 ⚖️ The big risk and the real framework: tenant covenant vs real estate quality 11:06 📉➡️🏢 Sale-leasebacks explained: why companies sell and lease back their buildings 12:38 📆 How long sale-leaseback leases need to be (10–15 years, often 20+) 13:52 🏦 Who buys net lease assets: institutions vs family offices and privates 14:12 🍔 Net lease in small markets: QSR portfolios, recyclability, and why they sell well 15:22 🏢 Office resurgence: lease rollovers, return-to-work, and the "flight to quality" 17:17 🚫 "We could not use the word office" and how that narrative is changing 19:08 🏙️ Deloitte Tower and what a Class A trade could benchmark in Montreal 20:29 💰 Montreal's buyer depth: why big private capital steps up locally 21:45 🧠 Quebec perception gap: language, politics, tenant culture, and investor education 23:16 👋 Wrap and how to connect with Marie-Claire and the team 25:01 🔗 Connect with Marie-Claire Laflamme-Sanders 💼 LinkedIn: 🏢 Avison Young: 👤 Follow Axel Monsaingeon 💼 LinkedIn: 📸 Instagram: 🌐 Explore more resources 📊 Market guides, data, and advertising opportunities:

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Persist to 2026: Why Net Lease Real Estate Is Winning in an Uncertain Market is an episode from The Very Real Estate Effect Investing in Quebec by Axel Monsaingeon.

This episode is 25:48 long.

This episode was published on Jan 2, 2026.

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