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CBRE Investment Management buys $1.6B net-lease platform
The deal adds 208 net-lease assets across 39 states, totaling 12 million square feet, with about 17-year average lease terms.
CBRE Investment Management, the $155 billion investment arm of CBRE, said it acquired Tenet Equity’s $1.6 billion net-lease platform. The portfolio includes 208 assets across 39 states, encompassing 12 million square feet of commercial real estate.
CBRE said the properties are fully leased to middle-market industrial tenants, with tenants typically paying lower base rent while covering building operating expenses such as taxes, insurance, and maintenance. The average lease term is roughly 17 years, according to CBRE.
CBRE Investment Management plans to partner with Tenet Equity on managing the assets and expanding its net-lease platform. The firm appointed Akash Shivashankara as senior portfolio manager to lead the effort.
In a statement, CBRE’s co-CEO and chief investment officer Adam Gallistel said the net-lease sector can act as a hedge against persistent inflation, citing long lease terms and limited capital expenditures. Commercial Observer also reported that the acquisition aims to combine CBRE’s portfolio management and execution capabilities with Tenet’s sourcing and management track record.