MarketSnapshot: Multi-Tenant Retail

The multi-tenant retail sector posted $14.1B in third quarter sales volume, up 9.2% from the second quarter and nearly 40% year-over-year. Cap rates edged up 4 basis points to 7.11%, remaining flat compared with a year ago.

The Southeast region dominated transaction activity in the third quarter, recording $3.9B in volume and accounting for 28.0% of the total. The West followed with $3.4B, representing 24.4% of overall volume. The Southwest ranked third with $2.3B, or 16.7%, while the Midwest recorded $2.1B, representing 14.8%. The Northeast contributed $1.6B, or 11.6% of total volume, and the Mid-Atlantic region trailed with $0.6B, accounting for 4.5%.

By region, cap rates ranged from a low of 6.30% in the West to a high of 7.95% in the Midwest. All regions, except the West, recorded a modest increase over the prior quarter. Average cap rates are up 82 basis points from the recent low of 6.23% recorded in the third quarter of 2022.

Private buyers accounted for 60% of multi-tenant retail acquisitions through the third quarter of 2025, followed by institutional investors at 23%. The institutional share has risen sharply from 8% in 2024, while private investment activity has declined by 10% over the same period.