MarketSnapshot: Single-tenant retail

The single-tenant retail sector posted $2.7 billion in first-quarter sales volume, down 33.9% from the prior quarter and 22.4% compared to the same period last year. Cap rates recorded slight downward pressure, declining 5 basis points during the quarter to 6.84%, and were also down 5 basis points year over year.

The Southeast region led transaction activity, recording $673.3 million in volume and accounting for 25.1% of the total. The West followed with $632.6 million, representing 23.6% of overall volume. The Northeast ranked third with $442.7 million, or 16.5%, while the Southwest recorded $407.8 million, representing 15.2%. The Midwest contributed $335.4 million, or 12.5% of total volume, and the Mid-Atlantic region trailed with $194.6 million, accounting for 7.2%.

By region, cap rates ranged from a low of 5.98% in the Northeast to a high of 7.69% in the Midwest. All regions, except the Midwest and West, recorded a modest decline from the prior quarter. Average cap rates are up 124 basis points from the recent low of 5.60% recorded in the fourth quarter of 2022.

Private buyers accounted for 69% of single-tenant retail acquisitions through the first quarter of 2026, followed by REIT/Listed investors at 15% and domestic users/others at 10%. The private share increased by 3% from 2025, while institutional investment activity fell by 6%. REIT/Listed and cross-border investment edged slightly higher by 1% from 2025.