Net-Lease Investment Volume Increases by 13%

Executive Summary

• Net-lease investment volume increased by 13% year-over-year in Q2 to $12.8 billion, accounting for 10% of total commercial real estate investment. 
• For the year ending Q2 2026, net-lease investment volume increased by 14% year-over-year to $57 billion. 
• Net-lease industrial investment increased by 28% year-over-year to $8.1 billion due to stronger single-asset sales. Office investment fell by 21% to $1.8 billion, while retail volume increased by 6% to $2.9 billion. 
• The industrial sector had the largest share of total net-lease investment at 63% in Q2, up from 56% a year earlier. The office sector’s share decreased to 14% from 20%, while the retail sector’s share fell to 22% from 24%.
• The average 10-year Treasury yield in Q2 increased to 4.5% from 4.4% a year ago, while the average net-lease capitalization rate held at 6.9%. The spread between the two fell by 10 basis points (bps) to 241 bps, reflecting stable pricing for net-lease assets.