Hands down, the industrial asset class has become a favorite among net lease investors and, for that matter, the larger commercial real estate space. But behind that category, retail and office are jockeying for favor as well, with some surprising results.
In general, the net lease market has done well since the pandemic with its share of the total market increasing to 15.5%, Revathi Greenwood, global head of Data and Insights at Cushman & Wakefield, tells GlobeSt.com. Greenwood is delivering the keynote address at the GlobeSt. NET LEASE Conference, which is kicking off today.
But the allocation of investment into net lease has shifted since the heath crisis, she notes. Prior to the pandemic, retail was a quarter of the market. Then, during the crisis, it was roughly split between office and industrial. "Retail has now shrunk to 16% and office is one-third," she says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
