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Net Lease Share of Investment Volume Exceeds 2009 Levels
Even with a 2.6% year-over-year decline in the first quarter, net lease investment sales performed as they have in prior downturns. The sector—encompassing the office, industrial and retail categories—represented 15.4% of all investment sales volume over the four quarters ending March 31, CBRE reports. That compares to a 15.1% share in 2009.
CBRE notes that net-lease investments provide attractive risk-adjusted returns from long-term leases with creditworthy tenants. “These returns are particularly appealing in times of uncertainty,” the firm reports.
The Q1 decline of 2.6% Y-O-Y compares to an 18.3% decline for the broader commercial real estate market. Moreover, it represents a 10% increase over Q1 2019 volume.
The office sector’s share of total net-lease investment volume increased by 5.3 percentage points over the preceding year to 41.5%, according to CBRE. Retail’s share fell by 5.4 percentage points to 15.1%, while industrial’s share remained relatively unchanged at 43.4%.
Pictured: Industrial properties such as this Fedex-leased South Windsor, CT facility have represented 43.4% of net lease sales volume over the past 12 months.
- ◦Sale/Acquisition
