Industrial real estate now dominates net lease transactions, comprising 52% of total volume in 2023. Hunt Rose, Investments Director & Partner, explains, “Net lease investors want more exposure to industrial. Value-add investors are acquiring gross and modified gross leases and converting to net.”
This shift is standardizing lease terms—”expense structures, term length, etc.,”—making industrial assets more appealing to passive investors. Rose adds, “More & cleaner net lease industrial leases will result in more passive net lease buyers getting comfortable with industrial.”
According to Rose, “industrial cap rates remain compressed, from a historical perspective, compared to other net lease asset classes.” TruCore Investments is strategically positioned to capitalize on these evolving trends in the industrial net lease market.