MarketSnapshot: Multi-tenant industrial

The multi-tenant industrial sector recorded nearly $22.8 billion in first quarter investment sales, down 13.6% from the previous quarter but up 26.6% year over year. While volume has moderated, 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 $5.8 billion and accounting for 25.4% of total activity. The West followed with $4.8 billion, representing 21.2% of the total, while the Southwest recorded $4.0 billion, or 17.7%. The Midwest recorded $3.9 billion in transactions, making up 17.1%, with the Mid-Atlantic and Northeast contributing $2.2 billion, or 9.7%, and $1.8 billion, or 7.7%, respectively.

The average cap rate rose 3 basis points to 6.44% in the last three months and is up by 22 basis points year over year. The Southeast was the only region to record a quarterly decline, while all other regions posted quarterly increases.

Private buyers accounted for 51% of multi-tenant industrial acquisitions during the first quarter of 2026, followed by institutional investors at 27%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has remained elevated during the same period.