In the evolving landscape of net lease investment, the growth of United Rentals, Sunbelt Rentals, and Herc Rentals marks a pivotal trend in the triple net (NNN) lease sector, highlighting the convergence of industrial utility with retail-like accessibility. These companies are central to the equipment rental industry, and they are redefining traditional NNN product by embodying characteristics of both sectors. With the lines between retail and industrial blurred, this offers investors new pathways to explore value in an otherwise segmented market.

Expansion by these companies mirrors the broader surge of the construction equipment rental market, which is projected to grow at a compound annual growth rate of 6.12% from 2023 to 2030. Driving this growth is increased government infrastructure spending and a shift toward renting equipment due to rising costs of new machinery. Holding about 34% of the U.S. market for equipment rentals, these companies highlight the sector's nearly 60% growth over the past decade.

Retail Sector Volatility and Cap Rate Increases

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.