December 11, 2020
Investment in U.S. net-lease properties rebounded in the third quarter, driven by strong interest in office assets and, despite COVID-19 related international travel restrictions, an increase in foreign investment, CBRE reported. Office’s share of Q3 total net lease investment stood at 33.6% as Q3 ended, up 1.1 percentage points from a year ago.
Retail’s share grew 5.4 percentage points to 23.2% year-over-year. Industrial accounted for 43.2% of net-lease investment activity, down 6.6 percentage points from Q3 2019 due to tight market conditions causing an increase in asset pricing.
“While COVID-19 is creating a disconnect between buyer and seller expectations in the broader market, which has stalled price discovery and slowed investment activity, there remains strong interest in net-lease properties, particularly for mission-critical office assets, with investors seeking to mitigate risk during an economic downturn,” said Will Pike, vice chairman of net lease properties for capital markets at CBRE.
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