March 26, 2021
- Net-lease investment volume increased by 87.5% quarter-over-quarter in Q4 2020 to $23.6 billion, continuing a rebound that began in Q3.
- Net-lease investment accounted for 14.8% of total commercial real estate investment volume in 2020, above the five-year pre-COVID average of 11.7%.
- On a year-over-year basis, net-lease investment volume fell by 24% in 2020. Total commercial real estate investment volume was down by 31% year-over-year.
- The industrial sector’s share of total net lease investment volume in Q4 2020 jumped by 11.3 percentage points year-over-year to 52.4%. The office sector’s share fell by 7.6 percentage points to 27.7%, while the retail sector’s share declined by 3.7 percentage points to 19.9%.
- The average net-lease cap rate ended the year unchanged at 6.2%.
- Spreads between the average net-lease cap rate and the 10-year Treasury rate tightened to 527 basis points (bps) in Q4 2020 as the economic outlook improved and Treasury yields increased.
- San Jose, Boston, Dallas/Ft. Worth, Chicago and Los Angeles were the top five cities for net-lease investment volume in Q4 2020. Seattle, San Francisco, Phoenix, Houston and Northern New Jersey rounded out the top 10.
For More Information, Please Contact
Richard Barkham, Ph.D.
Global Chief Economist & Head of Americas Research
Spencer Levy
Chairman, Americas Research & Senior Economic Advisor
Darin Mellott
Director of Research, Americas
Will Pike
Vice Chairman & Managing Director
Net Lease Properties
Christopher Bosworth
Vice Chairman & Managing Director
Net Lease Properties