### Industrial Sector Drives Net-Lease Investment Growth in 2024
U.S. net-lease investment surged in 2024, with the industrial and logistics sector leading the way, according to a report from CBRE. Investment volume increased by 13% year-over-year, reaching $43.7 billion, driven by a particularly strong fourth quarter.
The industrial and logistics sector expanded its share of net-lease investment activity to 64% in Q4, up from 54% the year prior. Overall, industrial investment volume saw an 87% increase compared to the previous year.
“The net-lease sector demonstrated remarkable resilience and growth in 2024, driven by its stability and appeal to investors seeking compelling risk-adjusted returns,” said Will Pike, vice chairman of net lease properties for capital markets at CBRE. “We anticipate continued momentum in net-lease investment, especially in retail and the industrial and logistics sector, as investors prioritize low-risk opportunities amid potential capital markets volatility in the first half of 2025.”
The average cap rate rose by nine basis points quarter-over-quarter and 56 basis points year-over-year, reaching 6.8% in Q4 2024.
*Pictured: A net-leased FedEx facility in Portland, OR, which traded for $32 million in 2024. Courtesy of B+E.*
