Net-Leased Investments Outperforming Other Asset Classes

September 4, 2019

The volume of net-leased property investments increased nearly 34 percent in the second quarter of 2019 to $20.6 billion, according to a recent market report by CBRE.

 

Meanwhile the total year-over-year volume of net-leased investments ending Q2 totaled $74.2 million, the highest four quarter total since CBRE began tracking the market in 2002.

 

What's driving this trend?

 

"The high volume of net-lease activity has been a byproduct of an aggressive capital markets environment coupled with an influx of capital seeking compelling risk-adjusted returns," the report states.

 

As in our northern Intermountain region, national investors are now seeking out investment opportunities in high-growth secondary and tertiary markets like Salt Lake City and Boise.

 

Net-lease CAP rates were stable in Q2 and are expected to remain steady for the remainder of the year.  And cross-border transactions for net-leased properties soared to $3.9 billion, a 78.4 percent increase over Q2 2018.

 

Where are the International buyers coming from?

 

Over the past two years, the top buyers were from Canada, Germany and South Korea.

 

 

 

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