CBRE Investment Management Adds $1.6 Billion Net-Lease Platform Through Tenet Equity Deal

CBRE Investment Management Adds $1.6 Billion Net-Lease Platform Through Tenet Equity Deal

CBRE Investment Management, the investment arm of CBRE Group, has acquired a $1.6 billion net-lease portfolio from Tenet Equity, expanding the firm’s exposure to a sector its leadership views as resilient in an elevated inflation environment.

The transaction, announced Wednesday, covers 208 properties spread across 39 states, totaling roughly 12 million square feet of commercial space. The portfolio is entirely leased to middle-market industrial tenants, with an average remaining lease term of approximately 17 years.

Net-lease arrangements typically carry lower base rents, but tenants assume responsibility for operating costs such as taxes, insurance, and maintenance — a structure that reduces expense volatility for the property owner over long holding periods.

CBRE IM will not simply absorb the assets and move on. The firm said it will continue working alongside Tenet Equity, a sale-leaseback specialist and capital provider, to manage the acquired properties and expand the platform further. Akash Shivashankara, a senior portfolio manager, has been appointed to lead the net-lease initiative.

Adam Gallistel, co-CEO and chief investment officer at CBRE Investment Management, framed the deal as a hedge against persistent inflation, citing the portfolio’s long lease durations and minimal owner-funded capital expenditure requirements. He added that the combination of CBRE’s portfolio management and execution capabilities with Tenet’s sourcing track record would create new investment options for the firm’s clients.

Truist Securities served as advisor to CBRE Investment Management on the transaction.

The move underscores growing institutional appetite for long-duration, inflation-linked real estate income, particularly in the industrial segment where middle-market tenants have historically faced fewer financing alternatives than large public companies. CBRE IM oversees approximately $155 billion in assets globally.

Shares of CBRE Group closed at $140.57, down 1.19% from the previous close of $142.26, giving the company a market capitalization of roughly $42.8 billion.

What to watch

• Details on the expanded net-lease platform under portfolio manager Akash Shivashankara, including any additional acquisitions
• CBRE’s upcoming quarterly earnings, which may shed light on the Real Estate Investments segment’s contribution from the new portfolio
• Tenet Equity’s role in future sale-leaseback deals sourced through the partnership

Source: original release