MarketSnapshot: Single-Tenant Industrial

Industrial remains the most active single-tenant sector, with nearly $5.2 billion in third quarter investment sales. However, volume declined 17.3% from the second quarter and 26.3% year-over-year. Cap rates compressed slightly by 4 basis points from the second quarter but increased by 9 basis points year-over-year.

The Southwest region led transaction activity in the third quarter, recording $1.3B in volume and accounting for 26.0% of the total. The Southeast followed with $1.2B, representing 23.3% of overall volume. The Midwest ranked third with $1.0B, or 20.3%, while the West recorded $0.9B, representing 17.5%. The Northeast contributed $0.4B, or 8.4% of total volume, and the Mid-Atlantic region trailed with $0.2B, accounting for 4.5%.

By region, cap rates ranged from a low of 5.64% in the West to a high of 7.43% in the Midwest. All regions, except the Midwest, recorded a modest decline over the prior quarter. Average cap rates are up 127 basis points from the recent low of 5.21% recorded in the second quarter of 2022.

Private buyers accounted for 48% of single-tenant industrial acquisitions through the third quarter of 2025, followed by institutional investors at 23%. The private share rose by 6% from 2024, while institutional investment activity increased by 1% over the same period. REIT/Listed acquisitions fell from 11% of investment activity in 2024 to 8% as of the third quarter of 2025. The share of cross-border investment activity fell to 11% of deal volume, down from 20% in 2024.