The net lease sector remains one of the most resilience commercial real estate asset classes. That was evident during the Fall Net Lease Summit held by Texas REDnews and REjournals Sept. 25 at the Sheraton Dallas Hotel by the Galleria.

The event featured the top names in the net lease business. They shared their expertise with the big crowd, discussing the resiliency of net lease assets, the bright future this sector is poised to see and the challenges that the industry is working through.

The summit also provided plenty of networking opportunities. Attendees had the chance to catch up on the business, discuss recent deals and share their thoughts on the state of the market with their fellow attendees.

Sean Hostert with the Net Lease Observer podcast kicked off the summit with his keynote speech.

The summit’s first session, the State of the Net Lease Market: Optimism Ahead Amid Evolving Market Dynamics panel, focused on both the positives and challenges in today’s net lease sector. Speakers said that the net lease sector’s future continues to look bright despite the country’s economic challenges. Speaking during this panel were Jerry Hopkins, Executive Managing Director, Net Lease Capital Markets, Newmark; Stephen Preston, Chairman & CEO, FrontView REIT; Gordon Whiting, Managing Director, Founder and Co-Head Net Lease Real Estate strategy, TPG Angelo Gordon; Boyd Borjiet, Vice President, Investments, W. P. Carey Inc.; and Coler Yoakam, Senior Managing Director, Corporate Capital Markets and Single Tenant Net Lease, JLL, the panel’s moderator.

Next on the agenda was the Spotlight on Texas: Leading the Way in National Industrial Net Lease Expansion panel, with participants Scott Rohrman, Founder, 42 Real Estate; Zach Harris, Managing Director and Partner, TruCore Industrial; Tom Fishman, Executive Vice President, Acquisitions and Dispositions, Hillwood; Angie Wethington, Senior Director, Scannell Properties; and Jack Fraker, President, Global Head of Industrial and Logistics, Capital Markets, Newmark, who served as the moderator.

The Steady Streams: Retail and Medical Net Lease panel focused on two solid asset types in the net lesae sector. Speaking on this panel were Brad Motley, Partner, Trinity Real Estate Investment Services; Caroline Pinkston, Senior Director, Capital Markets, JLL; Elizabeth J. Randall, CCIM, President, Randall Commercial Group, LLC; Michael Fitzgerald, Head of U.S. Retail, Investments, W. P. Carey Inc.; Mark Manheimer, President and CEO, NETSTREIT; Dave Wirgler, Vice President, National Developer Services, Sands Investment Group; and moderator Toby Scrivner, Director, National Healthcare Group, Northmarq.

Closing the summit on the 1031 Exchange Trends: Navigating a Changing Landscape panel were participants Craig Brown, Esq., Senior Vice President, Regional Manager, Investment Property Exchange Services, Inc. (IPX1031); Greg Lehrmann, Attorney, Excel 1031 Exchange, LLC.; Brandon Balkman, Managing Director, Net Lease Capital LLC; Jared Morgan, CIO, Four Springs Capital; and Todd Phillips, CEO, Legacy Property Trust, the panel’s moderator.

Niche real estate types have long thrived in the broader industrial market, with categories such as cold storage and specialized manufacturing rising and falling in cycles. But in recent years, one of the fastest-growing subsectors has been industrial outdoor storage (IOS), according to CommercialCafe’s September National Industrial Report.

The sector’s growth has been fueled by its low costs and flexibility, offering solutions at a time when supply chain disruptions and shifting trade policy have pressured occupiers to maximize efficiency. As CommercialCafe says in its report, IOS facilities serve a range of uses, from overflow storage and vehicle parking to bulk material yards and infill locations, making them increasingly attractive to tenants and investors.

Supply, however, has not kept pace. Zoning constraints and the frequent redevelopment of IOS sites into higher-value properties have limited availability. That imbalance has driven rents sharply higher, according to CommercialCafe. Newmark reports that IOS rents have surged 123% since 2020, with inland hubs such as Memphis, Atlanta and Phoenix among the hottest markets.

Historically, most IOS properties have been privately held with non-standardized pricing. But institutional players are beginning to take a larger stake. PwC estimated the IOS market at about $200 billion in 2023, with $1.7 billion raised that year alone. Since then, activity has accelerated.

This year, Peakstone Realty Trust acquired a 51-asset IOS portfolio for $490 million, while Barings and Brennan Investment Group launched a joint venture targeting $150 million in IOS investments. Realterm also purchased a 13-property portfolio for $277 million. Analysts expect the asset class to become increasingly institutionalized, with standardized pricing models and growing confidence among lenders.

Still, challenges remain. As CommercialCafe says in its report, local governments and residents often push back against IOS developments, constraining supply even as new demand drivers emerge. Analysts note that future growth could come from the storage needs of technologies such as drone delivery systems and autonomous trucks.

The broader U.S. industrial market remains solid. CommercialCafe reported that in-place rents reached $8.66 per square foot in August, up three cents from July and 6.1% higher year-over-year. Developers are also pressing ahead: 338.3 million square feet of industrial space is under construction nationally, representing a projected inventory increase of 1.6%. By the end of August, 205.4 million square feet had already been delivered this year.

Manufacturing projects represent 28% of the pipeline, though they have accounted for just 14% of new starts since early 2023, according to CommercialCafe. That’s because manufacturing facilities take longer to complete than logistics projects, keeping them in the pipeline longer. After peaking in 2024, new manufacturing development has slowed considerably. Between 2021 and 2024, about 200 million square feet of space broke ground, but starts so far this year total less than 20 million square feet.

The slowdown is reflected in investment data. The U.S. Census Bureau reported annualized manufacturing construction spending of $223.1 billion in July 2025, down 7% from the record set in August 2024. Even so, spending remains more than triple its 2020 levels.

Industrial property sales reached $43.2 billion through August, averaging $137 per square foot. Notable deals include LG’s $2 billion buyout of GM’s stake in their Ultium Cells battery plant in Lansing, Michigan. The 2.8-million-square-foot facility is set to produce electric vehicle batteries, though GM has scaled back EV production amid softer demand.

Still, momentum in the EV sector persists. Toyota recently placed a $1.5 billion battery order, and GM continues to back plants in Ohio and Tennessee.

Hanley Investment Group Real Estate Advisors closed the sale of three newly constructed single-tenant drive-thru properties in the Dallas-Fort Worth metro area. All three properties were developed and sold by Tradecor, a private developer with offices in Dallas, Phoenix and Tampa.

Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko, in association with ParaSell Inc., represented the seller in the sale of a Son of a Butcher Drive-Thru and an adjacent Portillo’s Drive-Thru in Grapevine, Texas. Vice President Garrett Wood of Hanley Investment Group represented the buyer in the off-market acquisition of a Son of a Butcher drive-thru in Fort Worth, Texas.

Son of a Butcher Drive-Thru in Grapevine, Texas
Located at 480 W. State Highway 114, the 2,389-square-foot fast-casual restaurant features a new 15-year absolute triple-net ground lease. The property is part of a newly developed retail development that includes Portillo’s Drive-Thru, Firebirds Wood Fired Grill, Rock & Brews and Velvet Taco.

Portillo’s Drive-Thru in Grapevine, Texas
Located directly adjacent at 460 W. State Highway 114, the 6,250-square-foot restaurant features a new 10.5-year absolute triple-net ground lease. Both the Portillo’s and Son of a Butcher properties are positioned within Grapevine’s primary retail corridor, surrounded by high-performing national and regional tenants.

Son of a Butcher Drive-Thru in Fort Worth, Texas
Located at 9649 Sage Meadow Trail, the 2,247-square-foot fast-casual restaurant features a new 15-year absolute triple-net ground lease. The site is a hard-corner outparcel to Alliance Town Center, a 900-acre mixed-use destination anchored by corporate offices, hotels and national and regional retailers Chipotle, Firebirds Wood Fired Grill, First Watch, Original ChopShop, Panera Bread, P.F. Chang’s, and Whiskey Cake Kitchen & Bar.

Colliers earlier this month acquired Greystone Sales Group, LLC (GREA Dallas). Details of the transaction were not disclosed. 

GREA Dallas is a multifamily investment sales firm in Texas. The firm’s 25 professionals serve private and institutional investors nationwide.

“Dallas continues to be one of the most dynamic multifamily markets in the country,” said Gil Borok, President and CEO, U.S. & LATAM at Colliers. “Its strong economic fundamentals, population growth, and investment activity make it a key focus of our national multifamily capital markets strategy. The GREA Dallas team brings deep expertise and a proven track record, and allows us to further elevate our presence nationally and deliver best-in-class service.”

“We are thrilled to become part of a firm that has an exceptional record as one of the world’s most respected real estate service businesses,” said Todd Franks, Chairman and Founding Partner of GREA Dallas. “Joining Colliers enhances our ability to deliver unparalleled service across the multifamily real estate sector in Texas and nationally. We look forward to leveraging Colliers’ established platform and collaborating with their talented specialists to continue driving exceptional outcomes for our clients in sales and financing of this important asset class.”

After announcing a $15 million lobby renovation last year, JLL recently shared a first look at Four Westlake’s completed transformation. One of the most prominent office towers in Houston’s Energy Corridor, the 564,291-square-foot office tower now boasts top-of-the-line finishes that emphasize work-life balance. 

The upgrades, designed by IA Interior Architects and constructed by Gallant Builders, deliver a hospitality-inspired experience that today’s tenants are looking for. Highlights include:

• A modernized lobby with collaborative seating areas
• A fully upgraded fitness center with showers and locker rooms
• A library-style tenant lounge and coffee bar
• A 200-person “town hall” conferencing center
• A new food hall with diverse dining options

JLL leads leasing and property management at Four Westlake, where DBR recently signed a 47,000-square-foot lease, relocating from Westchase. Following the deal, the 20-story building still has 485,000 square feet available for tenants seeking high-quality, amenity-rich space in the Energy Corridor.

Lee & Associates brokered the lease of an 8,400- square-foot industrial building at 828 FM 1960 near Imperial Valley Drive in Houston’s North submarket.

The tenant, Bedliners of Houston LLC, is a Houston-based company specializing in the installation of high-quality spray-on bed liners for trucks and other vehicles. In addition to offering a variety of colors and accessories, the company is recognized for its durable and long-lasting coatings.

Lee & Associates represented the landlord in the transaction. The landlord, Christina Nguyen Trust, was represented by Richard Glass, SIOR, Principal, and Conrad Chambers, Associate of Lee & Associates.