MarketSnapshot: Single-tenant industrial

Industrial remains the most active single-tenant sector, with $8.8 billion in fourth quarter investment sales. Sales volume improved 34.4% from the third quarter and 1.6% year-over-year. Annual volume is up 6.6% from 2024. Cap rates compressed slightly by 2 basis points from the third quarter and by 8 basis points year-over-year.

The West region led transaction activity in the fourth quarter, recording $2.4 billion in volume and accounting for 27.6% of the total. The Southeast followed with $2.2 billion, representing 25.3% of overall volume. The Midwest ranked third with $1.3 billion, or 15.3%, while the Southwest recorded $1.3 billion, representing 14.8%. The Mid-Atlantic contributed $1.1 billion, or 12.5% of total volume, and the Northeast region trailed with $0.4 billion, accounting for 4.4%.

By region, cap rates ranged from a low of 5.68% in the West to a high of 7.18% in the Midwest. All regions, except the Mid-Atlantic, Southwest and West, recorded a modest decline over the prior quarter. Average cap rates are up 116 basis points from the recent low of 5.21% recorded in the second quarter of 2022.

Private buyers accounted for 47% of single-tenant industrial acquisitions through the fourth quarter of 2025, followed by institutional investors at 24%. The private share rose by 5% from 2024, while institutional investment activity increased by 2% over the same period. REIT/Listed acquisitions fell from 11% of investment activity in 2024 to 8% as of the fourth quarter of 2025. The share of cross-border investment activity fell to 13% of deal volume, down from 20% in 2024.