Net-lease investment increased 13% year over year in the second quarter of 2026, accounting for $12.8 billion, or 10%, of total commercial real estate investment, according to research from CBRE.
Over the past four quarters ending in June, net-lease investment volume grew by 14% year over year to $57 billion.
The increasingly popular leasing structure requires tenants to cover a portion of the taxes, insurance and maintenance expenses in addition to rent. Landlords enjoy a stable income with fewer management responsibilities. Tenants benefit from lower rents but assume more risks, such as insurance cost increases and maintenance problems.
CBRE writes that net-lease investment was driven by accelerating industrial activity and steady investor demand for long-duration, income producing assets. The industrial and logistics sector accounted for 63% of net-lease investment activity in the second quarter, for a total of $8.1 billion, up from 56% a year earlier.
The retail sector’s share of net-lease investment fell to 22% from last year’s 24%. The office sector accounted for 14%, down from 20% in 2025.
Get these articles in your inbox
Sign up for our daily newsletter
Get these articles in your inbox
Sign up for our daily newsletter
“Industrial demand remained the defining force in net-lease investment in Q2 2026, and retail’s steady growth reinforces the breadth of investor interest across property types, with investors continuing to favor stable, long-duration assets amid a constructive rate environment,” said Will Pike, president of U.S. industrial and logistics capital markets and managing director of net-lease properties at CBRE, in a press release.
Pike added: “Single-asset industrial transactions were a particular bright spot in Q2, and we expect industrial to continue driving the market through the second half of 2026.”
Private investors were the largest active buyers of net-lease properties in the second quarter, with a 16% year-over-year increase to $7.3 billion. Institutional investors and equity funds also increased spending by 16% in the second quarter to a total of $2.3 billion. Real estate investment trusts spent $1 billion, a decrease of 9% from the year before.
The average annual net-lease capitalization rate held steady at 6.9%. The office sector average fell slightly to 7.1%; industrial properties were unchanged, with an average rate of 6.9%; and retail rates were also at 6.9%.
