Investment Activity Recovery Continues in Q4 2020
Net-lease investment volume increased by 87.5% quarter-over-quarter in Q4 to $23.6 billion. The net-lease share of all commercial real estate investment activity stood at 14.8% in 2020, well above the five-year average of 11.7%.
Net-lease Investment volume fell by 24% year-over-year in 2020 to $60.5 billion. This was a gentler decline than the 31% drop for commercial real estate investment activity overall.
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%.
San Jose, Boston, Dallas/Ft. Worth, Chicago and Los Angeles were the top five cities for net-lease investment volume in Q4 2020.