Domestic and international capital is flooding the single-tenant net lease space, with sales volume from the second half of last year hitting $64 billion, 40% above same-period numbers in 2019.
A record $100 billion in single-tenant and net lease deals were completed last year, according to research from Colliers, with institutional capital and private equity leading the charge toward the space. Institutional, REIT, and cross-border capital sources accounted for almost 60% of all acquisition volume last year in the space, compared with 43% for the broader market.
Colliers notes that KKR's Strategic Lease Partners accounted for six deals totaling $780 million, while Blackstone and Brookfield each claimed several "headline-making" transactions last year. In addition, Colliers notes, Carlyle has announced plans to acquire an 18.3 million square foot net lease portfolio from iStar for $3.07 billion.
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