New CBRE report sheds light on foreign investment opportunities

CBRE, the global real estate investment and advisory firm, released the third quarter U.S. Net-Lease Investment Report.

According to the firm, net-lease investment rose year over year in the third quarter of 2019 reaching $20.9 billion. Year to date net lease investments increased by 24% to $55.2 billion.

High growth secondary and tertiary markets are leading the gains with the Inland Empire and Portland leading the way. The pickup comes largely by foreign investors entering the US net lease markets in a search for yield. Cross border net lease deals total $6.8 billion so far this year. That represents an 18.8% increase.

The largest foreign investors came from Canada, Germany, and Singapore according to the report.

Boston Sees Success in 2019

Meanwhile, in a press release, CBRE highlighted Boston for its success in the third quarter. The report says that net-lease investment in Q3 2019 for the city hit  $448 million, up 129% year-over-year. For the year-ending Q3 2019, net-lease investment in Boston totaled $2.930 billion—up 202% year-over-year.

“Over the past 12 months, we have seen significant demand for net-leased investments with interest coming from local and domestic, as well as foreign investors who have been very aggressive in the space,” said Scott Dragos, executive vice president of Capital Markets for CBRE in Boston. “We expect investor demand to continue to grow through the first quarter of 2020.”

Finally, you can read the full report here.

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