Investors are increasingly dumping loads of capital into single-tenant and net-lease properties, thanks to their reliable cash flow and longer lease terms, according to a midyear  analysis by Colliers. 

Colliers researchers said single-tenant net lease assets "smooth out volatility and create predictability in a portfolio," and noted that investors are increasingly directing their dollars into new spaces. 

In 2020 and through the first half of this year, retail accounted for 20% of all investment in the STNL space, as opposed to 31% coming out of the Great Financial Crisis. Currently, STNL retail volume is pushing back toward pre-pandemic levels, with Q2 2021 volume ringing in at $4.1 billion. While drug store pricing is strongest within that sector (and is outperforming the broader retail market), investors appear to be pivoting their capital to industrial (which has captured 46% of the market so far to date), and office (which held steady at 34%, in line with 2015-2019 numbers).