- Net lease volume hit $9.95B in Q1 2025, up 12.43% year-over-year with 1,077 transactions.
- Private investors led activity, making up nearly half of all acquisitions and dispositions.
- Industrial and retail assets dominated, while office volume declined 27%.
- Sale-leasebacks surged 69%, totaling $1.84B, with major deals in retail and industrial.
Net Lease Momentum Continues
The US net lease market posted a strong first quarter in 2025, with $9.95B in total transaction volume—up from $8.85B the previous quarter and 12.43% higher than a year ago, reports GlobeSt. The number of deals also rose, with 1,077 transactions compared to 822 in Q1 2024.
Private Capital In The Driver’s Seat
Private investors played a dominant role in the net lease market, responsible for 48.2% of acquisitions and 49.1% of dispositions. Institutional players, such as banks and insurance firms, remained active but accounted for a smaller share—23.8% and 17.9%, respectively.
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Sector Performance: Industrial And Retail Lead
Industrial properties continued to anchor the net lease sector, totaling $4.97B in volume—roughly half of all net lease transactions and up 22.72% year-over-year. Retail followed with $3.12B, a 38.76% annual increase, while office volume fell to $1.86B, a 27.08% drop.
Sale-Leasebacks And Cap Rates
Sale-leaseback activity saw a significant uptick, surging 69% to $1.84B. High-profile transactions included SouthState Bank’s $459M portfolio of 183 retail sites and Reddy Ice’s $134.7M industrial portfolio.
Net lease cap rates rose across the board. Industrial remained the most competitive at 6.62%, while office cap rates climbed to 7.27%. The spread between average net lease cap rates and the 10-year Treasury widened to 251 basis points, up 75 basis points from Q1 2024.
Geographies And Top Deals
California, New York, Florida, Georgia, Illinois, Arizona, Texas, North Carolina, and Pennsylvania all surpassed $250M in transaction volume during Q1. Major deals included:
- Industrial: Burlington’s $257M deal at March Air Reserve Base, CA
- Retail: Hy-Vee’s $19.8M sale-leaseback in Omaha
Office: Live Nation’s $85M deal in New York
Looking Ahead
With rising cap rates and growing demand for stable income-generating assets, especially in the industrial and retail sectors, net lease continues to offer an attractive play for both private and institutional capital. Elevated sale-leaseback activity and portfolio trades suggest confidence in long-term fundamentals.
