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.

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