2021 Net-Lease Investment Volume Jumps 48%

Executive Summary

• Net-lease investment volume increased by 31% year-over-year in Q4 2021 to $32.4 billion. Total commercial real estate investment volume grew by 93% to $322.3 billion.
• For full-year 2021, net-lease investment volume increased by 48% from 2020 to $92.1 billion, while total commercial real estate volume increased by 90% to $797.8 billion.
• The industrial sector’s share of total net-lease investment volume of the three major commercial property types increased to 58.4% in Q4 2021 from 53.8% in Q4 2020, while the office sector’s share increased to 27% from 25.8% and the retail sector’s share decreased to 14.5% from 20.4%.
• The average net-lease cap rate decreased by 10 basis points (bps) in Q4 to 6.0%.
• The U.S. 10-year Treasury yield closed 2021 at 1.5% and the spread between the average net-lease cap rate decreased to 452 bps. As of March 11, 2022, the spread was down to 402 bps.