The Weekly Take from CBRE The Long Run: What’s Driving Net Lease Investment
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Sep 9, 2025 Join Teddy Kaplan, President and CEO of NetLease Strategy at New Mountain Capital, and Will Pike, President of U.S. Industrial and Logistics Capital Markets at CBRE, as they delve into the booming world of net lease investments. They discuss how this hybrid asset class is gaining traction among institutional investors, especially in volatile markets. Topics include the emergence of manufacturing facilities as solid assets, the strategic use of sale-leasebacks, and the nuances of geographic valuations—highlighting the critical blend of real estate fundamentals and tenant quality.
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Use Sale‑Leasebacks To Unlock Capital
- Use sale‑leasebacks to return capital to owners while they sort broader operational uncertainty.
- Structure transactions to deliver immediate liquidity without losing operational control.
Institutional Capital Is Driving Volume
- Institutional demand for net lease is strong and growing, supporting modest volume increases in 2025.
- Capital is concentrated in industrial and retail net lease product types with office activity picking up.
Net Lease Lives Between Real Estate And Credit
- Net lease sits on a spectrum between real estate and credit; high‑grade deals attract real‑estate buyers.
- For many transactions, credit analysis (tenant strength) drives most of the alpha and underwriting decisions.