MarketSnapshot: Multi-Tenant Industrial

The multi-tenant industrial sector recorded $17.7B in third quarter investment sales, down 2.8% from the previous quarter but up 0.5% year-over-year. While volume moderated slightly, the sector continues to outperform on a relative basis, supported by strong tenant demand and long-term foundational tailwinds.

The Southeast region led the nation in third-quarter transaction volume, reaching $5.2B and accounting for 29.4% of total activity. The West followed with $4.3B, representing 23.9% of the total, while the Southwest recorded $3.8B, or 21.6%. The Midwest recorded $1.9B in transactions, making up 10.6%, with the Northeast and Mid-Atlantic contributing $1.4B, or 8.0%, and $1.2B, or 6.5%, respectively.

The average cap rate rose 5 basis points to 6.40% in the last three months and is now up 20 basis points year-over-year. The Midwest, Northeast, and Southeast experienced declines, while the Mid-Atlantic, Southwest, and West recorded increases.

Private buyers accounted for 57% of multi-tenant industrial acquisitions through the third quarter of 2025, followed by institutional investors at 21%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has remained elevated during the same period.