Net Lease Investment Falls But Leads CRE Activity: CBRE

By Barbra Murray

The pandemic-induced economic downturn continues to challenge the commercial real estate industry—and not even net-lease assets, a favorite among investors for their durability, escaped unscathed in the second quarter of 2020, according to CBRE.

Yet, the firm’s latest U.S. Net-Lease Investment Report noted, despite a drastic decline in net-lease investment, activity in the sector accounted for the highest share of total investment volume on record.

In the second quarter, net-lease office, industrial and retail investment volume toppled a whopping 61.8 percent year-over-year to just $8.1 billion, but total U.S. commercial real estate investment activity fared even worse, plummeting 69.9 percent. However, with investor confidence buoyed by the net-lease sector’s long-term leases and creditworthy tenants, the net-lease sector reached new heights, jumping approximately 7 percentage points quarter-over-quarter, accounting for 20.2 percent of total CRE investment and marking the sector’s highest ever percentage of total investment.

Click here to read more.

This entry was posted in Industrial, Industry. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s