Five Milestone Moments to Commemorate Five Decades of Investing for the Long Run®
This year marks W. P. Carey’s 50th anniversary, the company’s most exciting milestone yet. Throughout its history, the company has gone through different stages on its journey from a small, privately held investment management firm to a $24 billion publicly traded REIT – but through all the twists and turns, at its core has remained dedicated to Founder Wm. Polk Carey’s commitment to Investing for the Long Run. To commemorate five decades, W. P. Carey reflects on five defining moments in its history and celebrates how far it has come since its humble beginnings. Raise a glass and cheers to #50yearsofWPC!
1. W. P. Carey & Co is founded by Bill Carey
W. P. Carey Founder Bill Carey was a born entrepreneur. As a child he sold soda and writing ink he made in his basement to his neighbors. When he arrived at college to begin his freshman year, he soon discovered he owned something many of his schoolmates did not – a small dorm room refrigerator. Seeing an opportunity, he purchased as many refrigerators as he could afford and leased them to his schoolmates for a small fee. By the end of his sophomore year, he had made over $10,000.
This simple idea laid the groundwork for the founding of W. P. Carey (then W. P. Carey & Co) on April 3, 1973. Through W. P. Carey, his goal was twofold; to support growing companies with an immediate cash infusion through the purchase of their real estate and to provide individual investors with the opportunity to easily invest in income-producing real estate without the significant financial burden of purchasing an investment property.
2. W. P. Carey Begins trading on NYSE
On January 21, 1998, Carey Diversified LLC – the consolidation of Corporate Property Associates 1-9 which would later merge with W. P. Carey & Co to become W. P. Carey – began trading on the New York Stock Exchange under the ticker symbol “CDC” (now “WPC”). When the company started trading, it had a portfolio of 198 properties in 37 states. This milestone made W. P. Carey accessible to all investors and broadened the company’s opportunities for future capital. It was also the year W. P. Carey issued its first dividend, laying the foundation for its reputation today as a reliable income-producing stock. This year, W. P. Carey celebrated 25 years of trading on the NYSE!
3. W. P. Carey expands to Europe with opening of its London office
In 1999, W. P. Carey expanded into Europe with the opening of its London office. This launched a whole new avenue of investment opportunities and reinforced the company’s commitment to diversification – now across geography, in addition to property type and tenant industry. W. P. Carey was among the pioneers of the sale-leaseback model in Europe, helping to introduce the financing tool and its benefits for corporate owner-occupiers seeking capital. In 2008, W. P. Carey further grew its European foothold with the launch of its Amsterdam office. To date, W. P. Carey has invested over €8 billion in Europe, building a portfolio of more than 600 European assets across 20+ countries.
4. W. P. Carey converts to a REIT
On September 28, 2012, W. P. Carey converted to a Real Estate Investment Trust. Somewhat limited by its existing structure, the REIT conversion helped increase the company’s visibility and expanded its access to institutional capital. As a result, W. P. Carey was able to significantly increase the size of its portfolio, grow dividends and diversify its shareholder base with both active and passive REIT investors. In 2014, the company completed its inaugural public equity and US bond offerings and received investment-grade ratings from Moody’s and S&P.
5. W. P. Carey concludes its exit from the non-traded REIT business
On August 1, 2022, W. P. Carey announced the completion of its merger with its final Corporate Property Associates program, CPA®:18 – Global. This marked the exit of the company from the non-traded REIT business, effectively completing its transition to a pure-play net lease REIT. This transition enabled W. P. Carey to not only simplify the business, but become a more valuable company with improved earnings quality, enhanced size and scale, improved cost of capital and a strong, more flexible balance sheet. Today, this enables W. P. Carey to focus on generating long-term earnings growth and delivering long-term value to its shareholders.
Closing Thoughts
While reflecting on all that’s been accomplished over the past 50 years, it’s important to also note that W. P. Carey’s future has never looked brighter! With a team of talented and dedicated employees and a simpler, stronger company, W. P. Carey is poised to continue delivering on Bill Carey’s mission of Investing for the Long Run for many years to come.
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The Future Is Green
As the real estate industry evolves, sustainability continues to be recognized as a key consideration shaping investment strategies, tenant expectations and development practices. From carbon-neutral construction to community solar, the sector is embracing innovative solutions that promise both environmental and economic returns. Here are three sustainability trends shaping the real estate industry in 2025. Community Solar: Expanding Access to Renewable Energy One of the most impactful trends is the rise of community solar programs, where a building’s solar installation can extend renewable energy access to businesses and residents who might not be able to install solar themselves due to factors like limited rooftop space, shading, outdated electrical systems or high costs. In the last decade, community solar in the U.S. has grown about 80% annually and is projected to double from 2023 to 2028 to 14 GW (CBRE). This energy is usually sold at a slight discount to local subscribers, creating value in the community. Beyond financial returns, community solar improves grid resilience and reliability while decreasing dependence on fossil fuels. It also gives utility providers a way of locating power generation near their load centers and offtakers. Instead of buying power from a power plant that’s miles away and building transmission lines to the building, community solar locates power generation where people live. W. P. Carey is actively advancing community solar applications in several states. Carbon-Neutral Construction: Building with Purpose The construction phase of a building’s lifecycle presents a critical opportunity to reduce emissions. Investors and developers are increasingly conducting life-cycle carbon assessments and integrating carbon-neutral design standards into new builds and redevelopments. By engaging sustainability consultants early in the process and selecting materials with reduced embodied carbon, firms are minimizing environmental impact while enhancing long-term asset value. Industry wide, the low-carbon building market is projected to grow from about $655 billion in 2024 to nearly $1.6 trillion by 2034 – a compound annual growth rate (CAGR) of 11.8% (Zion Market Research). In 2024, W. P. Carey completed its first carbon-neutral construction project. During the development process, WPC prioritized lower-carbon concrete, locally sourced materials and the reuse of demolition materials on-site. To address the remaining embodied emissions, W. P. Carey procured high-quality, third-party verified carbon credits, following the standards set by the Integrity Council for the Voluntary Carbon Market (ICVCM). For more information, read the case study here. Net Zero Buildings: The Gold Standard Net zero buildings, which generate as much energy as they consume, are becoming the benchmark for sustainable development. These properties leverage energy-efficient technologies, solar energy and smart building systems to achieve operational neutrality. Net zero buildings offer benefits for owners, tenants and the environment, including reduced operating costs, healthier indoor air quality, better temperature control and a reduced carbon footprint. Net zero buildings are inherently more resilient and often command higher asset values. Globally, the net zero building market is projected to grow at a CAGR of nearly 20% annually from 2022 through 2030, driven by corporate climate commitments and tightening building codes (KD Market Insights). Conclusion: A Sustainable Path Forward The momentum behind sustainability in real estate is no longer aspirational – it’s actionable. For commercial real estate owners, the adoption of these sustainable solutions not only enhances asset values and meets evolving tenant demands but also opens new revenue streams and aligns with investor expectations. Real estate investors who embrace these opportunities are positioning themselves at the forefront of a sustainable future, where profitability and planet-positive outcomes go hand in hand. Interested in learning more about W. P. Carey’s commitment to sustainability? Read our most recent Corporate Responsibility Report.
Commercial Lease Types Explained: Find the Best Lease for Your Business
People who are relatively new to leasing commercial real estate often mistakenly think it is similar to a residential lease on a house or apartment. In fact, commercial leases are quite different and often much more complicated. There are different commercial real estate lease types, each of which suits the needs of different businesses and landlords. It's vital to understand what kind of lease you are being offered for your commercial property so you can ensure it’s the right lease for your business. Here are the various lease types and how they work. Gross Lease A gross lease is one where you pay a flat rental fee that includes everything. This means taxes, insurance, utilities and maintenance costs are all included in the lease. You might compare this with the rare residential lease that includes utilities and possibly cable. Gross leases work well if you are renting office space or retail space in a mall. The lease is calculated to include your share of all of the common operating costs of the space. In other words, your rent will include a prorated share of real estate tax, utilities, building insurance and janitorial costs. This allows landlords to avoid having to meter individual spaces. Gross leases are typically calculated by analysis or past data, but you can often negotiate specific terms of the lease. For example, the standard lease on an office building might include your share of janitorial services in common areas and other common area maintenance, but it can be to your benefit to negotiate a lease that also includes janitorial services inside the office. This saves money because you are paying for extra time from a company that is already coming in vs. hiring a new company altogether. Modified Gross Lease This is a lease where you might have negotiated not to pay for certain things, such as electric utility. This is also very common for commercial spaces with multiple tenants. Full-Service Lease This is a lease where you only have to worry about your rent. Everything else is handled by the landlord. This is often a lot more expensive than other lease types, but it can be easier to budget as you don't have to worry about, for example, seasonal increases in utility bills. It is also called a service gross lease. Choosing a gross lease may seem like the simpler option, but you will pay a bigger rent check every month compared to other lease types. You also need to trust that the landlord will keep up their end of the bargain and ensure that everything is paid for, and maintenance gets done when needed. Net Lease A net lease, on the other hand, is one which works from the base assumption that the tenant will be taking on responsibility for some or all of the costs of running and maintaining the building. This is more common with single-tenant buildings such as warehouses or restaurants, although can be executed in multi-tenant buildings as well. A pure net lease makes you responsible for all the costs related to a property. The rent is thus lower, and although you are responsible for other costs you can typically keep operating costs down by exploring sustainable retrofit projects like a solar panel installation if your facility does not already have. One advantage beyond the benefit of a lower base rent of a net lease is that you often have more control over the property and thereby maintain a sense of ownership. You can, for example, freely choose your own utility providers and maintenance workers instead of being stuck with the landlord's preferred vendor. While your operating costs may be less predictable compared to a gross lease, net leases tend to be long-term in nature so the uncertainty of operating costs is offset by the predictability in rental fees. Here are the three major types of net leases: Single-Net Lease: In a single-net lease, the tenant pays property tax and other taxes and rent while the landlord covers everything else. Also called an N lease. Double-Net Lease: In a double-net lease, the tenant pays taxes, rent and property insurance while the landlord covers everything else. Also called an NN lease. Triple-Net Lease: In a triple-net lease, the tenant pays all costs related to property management including taxes, rent, property insurance, maintenance and other costs. Also called an NNN lease. This is the most common type of net lease. Percentage Lease A percentage lease is a lease where instead of paying a fixed rent, you pay your landlord a percentage of your sales. This includes a certain amount of base rent, and also a negotiated break-even point, which might be a fixed amount or the base rent divided by the agreed percentage. Percentage leases can sometimes be beneficial to both parties for retail space, especially in a mall or shopping center. The terms can be net or gross, with the amount of the base rent set according to what the landlord is responsible for in terms of operating costs. Operating versus Capital Lease Most commercial real estate leases are operating leases, meaning you do not get ownership of the property after the lease is done. In many cases you will be able to renew and renegotiate the lease. With a capital lease, the property is treated as a purchase for accounting purposes, and you may gain ownership at the end of the lease. Capital leases have fairly strict requirements and are relatively rare in commercial real estate. They are similar to finance leases, where you automatically gain ownership at the end of the lease term. Ground Lease A ground lease is when you own the building, but another party owns the land it is located on. Ground leases tend to be very long, averaging 50 to 99 years (compared to the 10 to 30 year lease term of net leases and the typically even shorter gross leases). While ground leases can offer you full control over the building, with some limitations, you are adding another stakeholder with other interests and opinions. It can also be harder to get out of a ground lease if you need to relocate your business. So, what is the best type of commercial lease agreement? The answer is that it depends on your business and the kind of space you are leasing. W. P. Carey is a long-term owner of real estate focused on triple-net leases. We primarily own single-tenant industrial properties that tend to be critical to business operations and therefore unlikely to be vacated for many years. This type of lease makes the most sense for these businesses as it gives the tenant full operational control over the property and is most similar to ownership. The added benefit of selling to W. P. Carey is that we are a long-term holder of real estate and do not look to flip our assets. We have a vested interest in maintaining the quality of our portfolio and pride ourselves in serving as a partner to our tenants should you have additional real estate or capital needs past the point of initial sale. That said, with over 50 years of experience providing customized solutions to our sellers, W. P. Carey can work with you on a lease type that is best for you and your business. Want to learn more? Contact & start the conversation with W. P. Carey today!
From Property to Partnership
At W. P. Carey, underwriting is the cornerstone of our investment strategy. Whether we’re evaluating a mission-critical distribution center, a top-producing grocery store, a well-located data center or a newly developed healthcare facility, our process is grounded in four essential pillars: The creditworthiness of the tenant The criticality of the asset The quality of the real estate The structure and pricing of the transaction Together, these criteria help us identify assets that deliver durable, long-term value to our shareholders. Creditworthiness of the tenant We begin with a deep dive into the tenant’s financial health. Our team evaluates balance sheets, income statements, liquidity levels, leverage ratios and access to capital. We also look beyond the numbers – analyzing the company’s industry position, growth trajectory and ability to withstand economic cycles. As long-term owners, our ideal tenant is one that will remain operational – and ideally continue to grow – for many years to come. Criticality of the asset Not all real estate is created equal. We focus on acquiring assets that are essential to a tenant’s operations – whether that’s a key distribution center, a top-performing retail location or a specialized manufacturing facility. Our goal is to understand how integral the property is to the tenant’s revenue generation, product development and supply chain. Assets that are truly critical are the ones that tenants are most likely to remain in – and invest in – over time. Quality of the real estate In addition to tenant credit and building criticality, we assess the real estate itself. This includes local market analysis, property condition assessments, third-party valuations, replacement cost estimates as well as understanding downside scenarios and re-leasing risk. Our goal is to ensure that the real estate stands on its own as a high-quality, income-generating asset. Transaction structure and pricing We structure each transaction to support both tenant operations and investor expectations. That often means negotiating long-term leases (typically 10-30 years) with built-in rent escalations and appropriate protections if needed – such as security deposits or letters of credit. Our pricing reflects both the fundamentals of the asset and the strength of the tenant, always with the goal of striking the right risk-return balance. A proven approach Throughout our more than 50-year history, this disciplined underwriting approach has enabled us to navigate complexity and build a portfolio of 1,600+ high-quality, operationally critical assets. Regardless of property type, these four pillars remain constant – highlighting that execution rooted in underwriting discipline is what ultimately drives long-term value. Interested in selling your real estate? Contact us today!