MarketSnapshot: Multi-Tenant Retail

The multi-tenant retail sector posted $17.2 billion in fourth quarter sales volume, up 10.8% from the third quarter and nearly 34% year-over-year. Cap rates edged down 3 basis points to 7.01%, falling 13 basis points compared with a year ago.

The Southeast region led transaction activity in the fourth quarter, recording $4.2 billion in volume and accounting for 24.6% of the total. The Southwest followed with $3.8 billion, representing 22.0% of overall volume. The West ranked third with $2.9 billion, or 17.0%, while the Midwest recorded $2.3 billion, representing 13.6%. The Northeast contributed $2.3 billion, or 13.5% of total volume, and the Mid-Atlantic region trailed with $1.6 billion, accounting for 9.2%.

By region, cap rates ranged from a low of 6.23% in the West to a high of 7.84% in the Midwest. All regions, except the Midwest, Northeast and Southeast, recorded a modest increase over the prior quarter. Average cap rates are up 77 basis points from the recent low of 6.23% recorded in the third quarter of 2022.

Private buyers accounted for 62% of multi-tenant retail acquisitions through the fourth quarter of 2025, followed by institutional investors at 21%. The institutional share has risen sharply from 8% in 2024, while private investment activity has declined by 6% over the same period.