MarketSnapshot: Multi-tenant retail

The multi-tenant retail sector posted $15.1 billion in first quarter sales volume, down 15.4% from the prior quarter but up 7.7% year over year. Cap rates edged up 1 basis point during the quarter to 7.01% but fell 10 basis points compared with a year ago.

The West region led transaction activity in the first quarter, recording $4.8 billion in volume and accounting for 31.8% of the total. The Southwest followed with $3.0 billion, representing 19.6% of overall volume. The Southeast ranked third with $2.7 billion, or 17.6%, while the Northeast recorded $2.3 billion, representing 14.9%. The Midwest contributed $1.5 billion, or 10.0% of total volume, and the Mid-Atlantic region trailed with $0.9 billion, accounting for 5.9%.

By region, cap rates ranged from a low of 6.21% in the West to a high of 7.76% in the Midwest. All regions, except the Northeast and West, recorded a modest decrease over the prior quarter, while rates in the Southwest were flat. Average cap rates are up 47 basis points from the recent low of 6.54% recorded in the third quarter of 2022.

Private buyers accounted for 53% of multi-tenant retail acquisitions during the first quarter of 2026, followed by institutional investors at 35%. The institutional share has risen sharply from 7% in 2024, while private investment activity has declined15% over the same period.