February 28, 2020
In its year-end 2019 tabulations, CBRE is reporting U.S. net-lease investment reached record highs last year, with investors increasingly attracted to high-growth secondary and tertiary markets.
Net-lease investment in office, industrial and retail properties increased by 10.9% in 2019 to a record $77.5 billion, outpacing the growth rate of all commercial real estate. This was despite a 23% year-over-year drop in Q4 2019 volume to $19.5 billion, still 18.2% above the five-year average.
Top markets for largest annual net lease gains included San Diego (+110%), the Inland Empire (+105%), Tampa (+56%), Indianapolis (+50%) and Memphis (+48%). Los Angeles ($5.0 billion), New York City ($4.9 billion) and San Jose ($4.2 billion) had the most full-year net-lease investment in 2019, while Seattle was the most favored market in Q4 2019 ($2.2 billion).
Foreign investment in U.S. net-lease properties increased to $9 billion in 2019, the second biggest year on record.
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