Net Lease Investors Eye Cross-Border Opportunities And New Property Types In 2025

The net lease market is set for change in 2025, with investors focusing on geographic expansion, new property types, and economic factors. While the U.S. remains a key market, international opportunities, especially in Mexico, are gaining attention. Tyler Swann, managing director of investments at W. P. Carey, highlights increased sale-leaseback and build-to-suit opportunities as more manufacturers set up in Mexico.

Swann is also exploring markets like Canada and new property types. “Data centers are drawing more interest due to high capital needs,” he says, while emphasizing W. P. Carey’s focus on long-term leases with single tenants. Healthcare properties in prime locations are another potential investment for 2025.

Interest rate volatility remains a key concern, impacting asset pricing and strategies. Swann notes that despite uncertainty, public REITs like W. P. Carey are less sensitive to rate fluctuations, allowing them to close deals in volatile environments.

 

Source:  GlobeSt.