Net-Lease Investment Volume Falls Slightly Below Pre-Pandemic Average

Executive Summary

• Net-lease investment volume declined by 4% year-over-year in Q1 to $12.2 billion, slightly below the five-year pre-pandemic Q1 average of $12.4 billion.
• For the year ending Q1 2026, net-lease investment volume increased by 8% year-over-year to $52.4 billion. 
• Net-lease industrial investment increased by 15% year-over-year to $7.1 billion due to stronger single-asset sales. Office investment fell by 22% to $2.4 billion, while retail volume fell by 21% to $2.7 billion. 
• The industrial sector had the largest share of total net-lease investment at 58% in Q1, up from 49% a year earlier. The office sector’s share decreased to 20% year-over-year from 24%, while the retail sector’s share fell to 22% from 27%.
• The average 10-year Treasury rate of 4.2% in Q1 was slightly lower than last year. Its spread between the average net-lease cap rate remained at 257 basis points (bps), reflecting stable pricing for net-lease assets.