Net Lease Investment Volume Rises Sharply in 4Q, CBRE Reports

U.S. net lease investment accelerated in late 2025, supported by steady cap rates and a widening yield spread that improved risk adjusted returns, according to the latest research from CBRE, Dallas.

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.

CBRE said total net lease investment volume rose 38% quarter over quarter and 13% year over year in the fourth quarter to $16.0 billion. This strong fourth quarter performance contributed to a 16% increase in full year 2025 activity, bringing the annual total to $51.4 billion.

The industrial & logistics sector continued to account for the largest share of net lease investment activity in Q4 2025 at 55%. Office assets gained notable ground, accounting for 24%, up from 18% a year earlier, while retail held steady at 21%. Q4 net-lease investment performance reflected these shifts: office investment increased 49% year over year to $3.8 billion, retail rose 15% to $3.3 billion, and industrial edged up 1% to $8.8 billion, CBRE reported.

CBRE President of U.S. Industrial & Logistics Capital Markets and Managing Director of Net Lease Properties Will Pike said investors are returning to high-quality assets amid improving capital market conditions and continued demand for stable cash flows. “Office saw a notable rebound, industrial remained a core preference, and we anticipate continued broad based strength heading into 2026,” he added.

Private buyers remained the most active participants in the market, with investment rising 33% quarter over quarter and 30% year over year to $9.1 billion in Q4 2025, the report said. Investment by institutional investors and equity funds increased 38% quarter over quarter and 70% year over year to $2.9 billion. REIT investment totaled $1.1 billion, up 36% quarter over quarter.