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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

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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