Key Takeaways
- • CBRE Investment Management acquired Tenet Equity from Cerberus Capital Management for $1.6 billion, adding a national net-lease platform with over 200 properties and approximately 12 million square feet across 39 states.
- • The Tenet platform serves more than 65 tenants across 26 industries and brings underwriting capabilities, tenant relationships, and sale-leaseback origination capacity to CBRE IM's investment operations.
- • U.S. net-lease investment reached $12.8 billion in Q2 2026, up 13% year-over-year, with industrial properties commanding $8.1 billion (up 28% YoY) while office declined 21% to $1.8 billion.
- • The transaction reflects a strategic shift toward acquiring operating platforms rather than individual assets, enabling investors to capture existing portfolios plus future origination pipelines and pipeline growth potential.
- • Cerberus formed Tenet in 2021 with net-lease veterans Nick Eggert and Andrew Gallagher, scaling the business over five years before monetizing through the sale to CBRE IM.
Summary
CBRE Investment Management has completed its acquisition of Tenet Equity from Cerberus Capital Management for $1.6 billion, significantly expanding its net-lease investment footprint with a mature, diversified platform. The deal adds approximately 12 million square feet of operating properties across 39 states to CBRE IM's portfolio, with the platform currently serving more than 65 tenants operating in 26 distinct industries. This transaction represents a strategic consolidation within the net-lease sector, where institutional capital increasingly favors platform acquisitions that provide not only existing assets but also operational infrastructure and future growth capacity.
Cerberus originally formed Tenet in 2021 as a partnership with net-lease specialists Nick Eggert and Andrew Gallagher, building the platform over five years into a meaningful player in the sector before electing to pursue a sale. According to Bob Davenport, global head of corporate credit at Cerberus, the net-lease asset class occupies a distinctive position "at the intersection of corporate credit and real estate," and the firm expressed confidence that Tenet is "well-positioned for substantial growth and success" under CBRE IM's ownership. CBRE IM has signaled its intention to expand Tenet's net-lease holdings as the platform continues to grow, positioning the acquisition as a springboard for future origination and portfolio expansion.
The deal timing reflects robust institutional appetite for net-lease assets. U.S. net-lease investment reached $12.8 billion in the second quarter of 2026, representing a 13% increase year-over-year and accounting for 10% of all commercial real estate investment volume. Industrial properties dominated this activity, generating $8.1 billion in transaction volume—a 28% year-over-year surge—while retail investment rose 6% to $2.9 billion. Office net-lease investment declined 21% to $1.8 billion, reflecting broader sector headwinds. The Tenet acquisition exemplifies a broader market trend in which institutional real estate investors increasingly target platform acquisitions that bundle existing assets with underwriting capabilities, established tenant relationships, and origination capacity to support ongoing deal flow and pipeline development.
Cerberus originally formed Tenet in 2021 as a partnership with net-lease specialists Nick Eggert and Andrew Gallagher, building the platform over five years into a meaningful player in the sector before electing to pursue a sale. According to Bob Davenport, global head of corporate credit at Cerberus, the net-lease asset class occupies a distinctive position "at the intersection of corporate credit and real estate," and the firm expressed confidence that Tenet is "well-positioned for substantial growth and success" under CBRE IM's ownership. CBRE IM has signaled its intention to expand Tenet's net-lease holdings as the platform continues to grow, positioning the acquisition as a springboard for future origination and portfolio expansion.
The deal timing reflects robust institutional appetite for net-lease assets. U.S. net-lease investment reached $12.8 billion in the second quarter of 2026, representing a 13% increase year-over-year and accounting for 10% of all commercial real estate investment volume. Industrial properties dominated this activity, generating $8.1 billion in transaction volume—a 28% year-over-year surge—while retail investment rose 6% to $2.9 billion. Office net-lease investment declined 21% to $1.8 billion, reflecting broader sector headwinds. The Tenet acquisition exemplifies a broader market trend in which institutional real estate investors increasingly target platform acquisitions that bundle existing assets with underwriting capabilities, established tenant relationships, and origination capacity to support ongoing deal flow and pipeline development.
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