DFW Net Lease Investments Fell 40% In Q2, But Area Still Bests Most Other Markets

The volume of commercial net lease investments in Dallas-Fort Worth plummeted 40% to $270M in the second quarter of 2020, according to CBRE data.

Downtown Dallas

Still, DFW as a whole continues to outrank most other U.S. metros as a prime target for investors searching for net lease assets that offer long-term lease contracts and steady cash flow, CBRE said.

Despite the large drop in transactional volume in Q2, Dallas-Fort Worth's net lease investment activity still ranked fifth nationwide. Only California's Inland Empire, Los Angeles, Philadelphia and Chicago saw larger investment volumes.

One of the country's largest net lease investment transactions by price during the quarter occurred inside DFW's booming industrial sector, CBRE noted. Black Creek Group paid $70M ($114 per SF) for 618K SF inside Carrollton's Valwood Crossroads development.

Dallas-Fort Worth also ranked third in the nation by recording $3.2B in net lease investment activity for the fiscal year ending in Q2 2020.

“Dallas-Fort Worth has been set up to weather the current storm better than most other markets,” CBRE Senior Vice President Jared Aubrey said in a statement.

“There is still a strong demand for net-lease investment properties and we’ve actually seen prices for certain assets go even higher than they were pre-pandemic. As long as construction continues and we’re able to maintain supply, we’re in a great situation to continue to see high net-lease investment activity."

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