US net lease investments slip in 2022; GIC JV buys Summit Industrial for C$5.9B

February 25, 2023

S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

The U.S. net lease investment volume in 2022 stood at $71 billion, down 25% from the record amount the previous year, and accounted for 11% of total commercial real estate investment volume, according to a report from CBRE.

Investment volume in the fourth quarter of 2022 plunged 63% to $12.7 billion, the real estate services and investment firm said in its "U.S. Net Lease | Q4 2022" report.

The industrial and logistics sector was the largest for net lease investments in the fourth quarter of 2022, accounting for 44% of the total, although that was down from 60% a year ago. The shares of net lease investments grew to 32% in office properties and 24% in retail properties year over year.

CBRE expects net-lease investment activity in 2023 to increase due to its less risky nature as inflation eases amid a slowing economy.

CHART OF THE WEEK: US REIT average short interest falls slightly in January

SNL Image

U.S. equity real estate investment trusts' average short interest declined 5 basis points in January to 3.2% of shares outstanding, data from S&P Global Market Intelligence showed.

Hotel REITs logged the biggest increase in average short interest across all property types in January, rising by 39 basis points from the previous month to 4.2% of shares outstanding as of January-end.

The advertising segment recorded the biggest drop across all property types, losing 52 basis points month over month to 4.2% of shares outstanding as of Jan. 31.


* A joint venture between GIC Real Estate Pte. Ltd. and Dream Industrial REIT completed the acquisition of Summit Industrial Income REIT in an all-cash transaction worth C$5.9 billion, including the assumption of certain debt.

* Affiliates of GIC Real Estate and Centerbridge Partners LP agreed to acquire all outstanding shares of Indus Realty Trust Inc. in an all-cash deal valued at roughly $868 million.

Property transactions

* Realty Income Corp. formed a strategic real estate partnership with Plenty Unlimited Inc., under which the retail real estate investment trust will acquire and provide development financing for properties that will house Plenty's indoor farms. The arrangement allows for potential development opportunities of up to $1 billion.

* Terreno Realty Corp. is under contract to purchase a 121-acre industrial development site at the Countyline Corporate Park in Hialeah, Fla., for $173.6 million, The Real Deal reported.

* Slate Property Group LLC agreed to purchase 600 Columbus Ave., a 166-unit rental building on the Upper West Side in New York City, for $120 million, according to The Real Deal.

* Standard International Inc. bought the 14-story, 97-key Sixty SoHo hotel at 60 Thompson St. in Lower Manhattan, N.Y., from the Pomeranc family's Sixty Collective for $106.9 million, The Real Deal reported.

SNL Image

Cohen & Steers' total REIT holdings inch higher in Q4'22

Land & Buildings sets crosshair on Six Flags in Q4'22

AEW Capital pares holdings in 25 US REITs, exits 3 in Q4'22

Source link

Prudential Cal strives to provide the most detailed information about the real estate industry. We assist people in making the best decisions possible by offering unique insights into the global real estate market and advice for both homebuyers and sellers.
Additional Information
Copyright © 2023 Prudential Cal. All Rights Reserved. Protection Status
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram