U.S. net-lease investment surged in 2024, led by the industrial & logistics sector, CBRE reported. On a dollar-volume basis, 2024 saw a 13% year-over-year increase to $43.7 billion, boosted by an especially strong fourth quarter.

Industrial & logistics increased its share of net-lease investment activity to 64% in Q4 from 54% a year earlier. In 2024, investment volume for industrial increased 87% from a year earlier.

“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 & 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 bps Y-O-Y to 6.8% in Q4 2024.

Pictured: A net-leased FedEx facility in Portland, OR, which traded for $32 million in 2024. Courtesy B+E.