Net-lease investment fell significantly in Q2, but its share of sharply lower commercial estate investment activity jumped to a record 20.2% from 13.3% in Q1.
Net-lease investment volume fell by 61.8% year-over-year in Q2 to $8.1 billion.
The industrial sector’s share of total net-lease investment increased to 48% in Q2 2020, while the office and retail sectors’ shares fell.
The average net-lease cap rate was unchanged at 6.3% in Q2 due to limited investment activity. Spreads widened to 559 basis points (bps) in Q2—the most in seven years—as the 10-year Treasury rate hit a historic low of 0.66%.