Net-Lease Investment Volume Rises in Q2 2026, Extending Broad Market Momentum

U.S. net-lease investment gained further momentum in Q2 2026, driven by accelerating industrial activity and steady investor demand for long-duration, income-producing assets, according to the latest research from CBRE.

Net-lease properties feature lease structures in which tenants cover a portion or all of the taxes, insurance and maintenance expenses in addition to rent. Net-lease investment volume increased 13% year-over-year in Q2 2026, reaching $12.8 billion and accounting for 10% of total commercial real estate investment. For the year ending Q2 2026, net-lease investment volume increased 14% year-over-year to $57 billion.

The industrial & logistics sector continued to account for the largest share of net-lease investment activity in Q2 2026 at 63% ($8.1 billion), up from 56% a year earlier, with investment rising 28% year-over-year driven by a 37% increase in single-asset sales. The office sector's share decreased to 14% ($1.8 billion) from 20% a year ago, reflecting a 21% year-over-year decline in volume, while retail's share eased to 22% ($2.9 billion) from 24%, with investment volume up 6% year-over-year.

"Industrial demand remained the defining force in net-lease investment in Q2 2026, and retail's steady growth reinforces the breadth of investor interest across property types, with investors continuing to favor stable, long-duration assets amid a constructive rate environment," said Will Pike, President of U.S. Industrial & Logistics Capital Markets and Managing Director of Net-Lease Properties at CBRE. "Single-asset industrial transactions were a particular bright spot in Q2, and we expect industrial to continue driving the market through the second half of 2026."

Private investors remained the most active buyers in the market, with investment increasing 16% year-over-year to $7.3 billion in Q2 2026. Institutional investors and equity funds increased net-lease investment by 16% year-over-year to $2.3 billion. REIT investment totaled $1.0 billion, down 9% from a year earlier.

Cross-border investment increased 14% year-over-year to $922 million in Q2 2026, representing 7% of total net-lease investment, consistent with the prior year. For the year ending Q2 2026, foreign net-lease investment fell 15% to $4.8 billion. Sweden, Japan, Canada, Singapore and South Korea were the leading sources of cross-border capital over the past year, together accounting for 80% of total foreign investment volume.

The average net-lease capitalization rate held steady year-over-year at 6.9% in Q2 2026. At the sector level, the average office cap rate fell 15 basis points (bps) to 7.1%, while the average industrial cap rate increased 12 bps to 6.7%, and the average retail cap rate remained at 6.9%. The average 10-year Treasury yield rose to 4.5% in Q2 2026 from 4.4% a year earlier, narrowing the cap rate spread by 10 bps to 241 bps.