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California Markets Rank Among Top for Net Lease Investment Volume
Research from CBRE shows three California markets were ranked among the Top 10 for total net lease investment volumes during Q2 2020. Greater Los Angeles and the Inland Empire ranked third and fourth, respectively, while San Francisco came in No. 8. Additionally, two other California markets made the Top 20 list with Orange County at No. 18 and San Jose at No. 19. Chicago was ranked No.1 and Philadelphia No. 2.
Overall, net lease investment fell significantly in Q2 2020, but comprised the highest share of total volume on record amid a sharp decline in commercial real estate investment activity caused by the COVID-19 pandemic. CBRE reports net lease investment, encompassing office, industrial and retail properties, reached 20.2% of total commercial real estate investment in Q2 2020, up from 13.3% in Q1 2020—the sector’s highest percentage on record.
CBRE’s Anthony DeLorenzo says, “Amid all the volatility and concern in the marketplace, investors are still looking to deploy capital. Many are turning to long-term net leased assets as a potential safe haven. The net lease space has also seen more liquidity from lenders than some of the multi-tenant product in the market. Having lenders on board has made buying these types of assets not only a hedge but interesting cash flow plays considering the attractive leveraged returns we are seeing.”
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Lease


