MarketSnapshot: Multi-Tenant Industrial

The multi-tenant industrial sector recorded nearly $25.2 billion in fourth quarter investment sales, up 15.9% from the previous quarter and 3.1% year-over-year. While volume has improved, 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 fourth-quarter transaction volume, reaching $6.9 billion and accounting for 27.3% of total activity. The West followed with $5.2 billion, representing 20.7% of the total, while the Southwest recorded $4.9 billion, or 19.5%. The Midwest recorded $3.6 billion in transactions, making up 14.3%, with the Mid-Atlantic and Northeast contributing $2.4 billion, or 9.5%, and $2.1 billion, or 8.5%, respectively.

The average cap rate rose 5 basis points to 6.43% in the last three months and is now up 27 basis points year-over-year. The Mid-Atlantic, Southeast, Southwest and West experienced quarterly declines, while the Midwest and Northeast recorded increases.

Private buyers accounted for 58% of multi-tenant industrial acquisitions through the fourth quarter of 2025, followed by institutional investors at 22%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has remained elevated during the same period.