Broadstone Net Lease Expands Build-to-Suit Pipeline with $23M in New…

Event summary

Broadstone Net Lease (BNL) added $23M in build-to-suit developments for Hobby Lobby and Academy Sports.
Construction began in August 2026, with both projects targeting stabilization by June 2027.
Deals were directly sourced, off-market transactions in Manor, TX, each totaling 55,000 square feet.
Estimated total project investment for both properties is $22.776M, with cash capitalization rates of 7.1%.
Lease terms are 15 years for both properties, with annual rent escalations of 0.5% and 0.4%, respectively.

The big picture

BNL's expansion into build-to-suit developments reflects a strategic pivot toward higher-growth, tenant-driven real estate investments. With a portfolio of 766 properties as of mid-2026, the company is balancing diversification with targeted retail sector plays. The $23M addition underscores BNL's focus on long-term lease structures, though it raises questions about exposure to retail volatility in an uncertain economic climate.

What we're watching

Tenant Concentration: How BNL's reliance on retail tenants like Hobby Lobby and Academy Sports may impact portfolio resilience amid shifting consumer trends.
Development Timing: Whether BNL can maintain its projected stabilization timeline given potential construction delays or material cost fluctuations.
Yield Sustainability: The pace at which BNL can sustain its estimated straight-line yields in a rising interest rate environment.