Postal Realty Trust’s continued acquisition of USPS-leased assets highlights a defensive rotation underway in commercial real estate. Capital is prioritizing predictable income over expansion narratives as refinancing risk, rent volatility, and operating uncertainty dominate underwriting.

Government-leased properties offer a simple proposition: long leases, high occupancy, and federal credit. That stability comes at the cost of tenant concentration and limited upside, but in the current environment, those risks are being discounted less aggressively than vacancy or rollover exposure in traditional asset classes.

This strategy reflects a broader re-rating of “boring” real estate. Assets once viewed as niche or inefficient are now being reframed as income instruments. The comparison is no longer against growth-oriented CRE, but against fixed income alternatives struggling with duration and inflation sensitivity.

The risk is not operational — it is political. Any shift in federal real estate strategy would ripple through these portfolios quickly. For now, capital appears willing to accept that tail risk in exchange for near-term certainty.