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.

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