Industrial Sector Drives Net-Lease Investment Surge with 13% Increase in 2024

Industrial Sector Drives Net-Lease Investment Surge with 13% Increase in 2024
Industrial Sector Drives Net-Lease Investment Surge with 13% Increase in 2024

### 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.*

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

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