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The net-lease market is soaring. So is the activity level of this investment and advisory firm.

As the net-lease real estate investment market has risen to prominence over the better part of the past decade, US Realty Advisors LLC has been along for the ride. And that journey has been a profitable one for the New York City-based net-lease investment and advisory services firm, says Richard H. Ader, chairman of the privately held company.

Ader knows a thing or two about the net-lease industry; he's been toiling in the business since 1968. His expertise, along with the combined 110 years of experience US Realty Advisors other senior executives possess, has allowed the firm to transact an average of $1 billion worth of deals each year.

Founded in 1989, US Realty invests capital for pension funds, private groups, REITs, institutional investors like General Electric, Investcorp International Inc. and AIG SunAmerica as well as for its own account. It currently has somewhere between $2.5 billion and $3 billion of assets under management, and the firm's average return on investment is in the mid to high teens, though Ader points out that with some investments, yields can reach triple digits.

With no signs of the net-lease market slowing down, Ader says the company is poised to increase its business and move in new directions. While Ader can't yet name names, the firm has signed up a new pension fund client, which he describes as one of the largest in the country. US Realty is also in the preliminary stages of possibly creating an affiliated firm to act as a complement to existing structures and gain access to public money.

In a recent conversation held at the firm's offices, Ader discussed US Realty's strategies and goals for the future as well as the state of the net-lease industry.

What forces are driving the net-lease market today?

RICHARD H. ADER: No corporation should ever own its real estate in my opinion. It makes no sense because of the exposure you have, and it's never an asset that's reflected positively in the value of a company's stock. You're better off using your money in your business than in your real estate.

Over the past couple of years, it's been...