For all intents, net lease transactions had a banner quarter in the first part of this year, according to CBRE stats. Net-lease investment volume totalled $14.3 billion for the first quarter, a 2.6% year over year drop that prompted CBRE to say the sector was close to its pre-pandemic performance. For commercial real estate as a whole, by comparison, volume was down 18.3% in Q1 2021, according to Real Capital Analytics. 

But those numbers don’t tell the whole story for the asset class. They don’t tell of the difficulty new entrants in the market are having sourcing transactions because it is so competitive. Or that pricing is far tighter than many investors would like. Or the huge amount of money chasing what is ultimately a finite number of deals. Those numbers don’t say what some experts are thinking, namely that the net lease market may be on the verge of entering frothy territory.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

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