**Net Lease Investment Sales Grow 21% Year-Over-Year**
The U.S. net lease investment market continued its upward trajectory in the first quarter of 2025, according to a recent report from CBRE. Net lease investment volume rose by 9% in Q1, reaching $9.6 billion. Over the twelve months ending March 31, 2025, total investment climbed 21% year-over-year to $44.6 billion.
While office and industrial & logistics segments experienced a typical seasonal dip between the fourth quarter of 2024 and the first quarter of 2025, the retail sector experienced notable growth. Retail net lease investment increased by 11% quarter-over-quarter to $3.1 billion.
Industrial & logistics properties remained dominant, accounting for $4.7 billion—or 49%—of total net lease investment volume in Q1, up from 46% in the same period last year. Retail’s share also grew, making up 32% ($3.1 billion) of the total, compared to 25% a year earlier. By contrast, office investment volume declined, representing 19% ($1.8 billion), down from 29% the year prior.
“Driven by its inherent stability and appealing risk-adjusted returns, the net lease sector showed impressive resilience and growth in Q1 2025,” said Will Pike, president of Industrial & Logistics / Net Lease Properties for Capital Markets at CBRE. “Looking ahead, we expect sustained investor interest in net lease assets, especially within the retail and industrial & logistics spaces, as they navigate potential market uncertainties by favoring lower-risk placements.”
The continued growth highlights investor confidence in the net lease market, particularly in sectors deemed more resilient amid broader economic uncertainties.
