MarketSnapshot: Single-tenant industrial

Industrial remains the most active single-tenant sector, with $7.7 billion in first quarter transactions. Sales volume declined 20.8% from the fourth quarter but improved 24.4% year over year. Cap rates rose slightly, by 2 basis points, from the prior quarter and declined 10 basis points from one year ago.

The Midwest region led transaction activity in the first quarter, recording over $1.6 billion in volume and accounting for 21.3% of total. The Southeast followed with just shy of $1.6 billion, representing 20.7% of overall volume. The Southwest ranked third with $1.3 billion, or 17.2%, while the Mid-Atlantic recorded $1.3 billion, representing 16.5%. The West contributed $1.1 billion, or 14.4% of total volume, and the Northeast region trailed with $0.8 billion, accounting for 9.8%.

By region, cap rates ranged from a low of 5.84% in the West to a high of 7.20% in the Midwest. All regions, except the Midwest and Northeast, recorded modest increases over the prior quarter, while the Southwest remained unchanged. Average cap rates are up 118 basis points from the recent low of 5.21% recorded in the second quarter of 2022.

Private buyers accounted for 38% of single-tenant industrial acquisitions through the first quarter of 2026, followed by institutional investors at 33%. The private share fell by 7% from 2025, while institutional investment activity increased by 9% over the same period. REIT/Listed acquisitions fell from 8% of investment activity in 2024 to 5% as of the first quarter of 2026. The share of cross-border investment activity increased to 16% of deal volume, up from 12% in 2025.