Investment in U.S. net-lease properties rebounded in the third quarter 2020, driven by strong interest in office assets and, despite COVID-19-related international travel restrictions, an increase in foreign investment, according to the latest research from CBRE.
Net-lease properties are characterized by a lease structure in which the tenant agrees to pay a portion or all of the taxes, insurance fees and maintenance costs, in addition to rent. After a weak previous quarter, net-lease investment volume increased by 24.4 percent quarter-over-quarter in the third quarter 2020 to $11.7 billion. The net-lease share of all commercial real estate investment activity stood at 18.4 percent in the third quarter 2020, well above the five-year average of 11.8 percent.
The office sector’s share of the third quarter 2020 total net-lease investment increased 1.1 percentage points from the year-earlier third quarter to 33.6 percent, while retail’s share grew 5.4 percentage points
