MarketSnapshot: Multi-tenant industrial

The multi-tenant industrial sector recorded nearly $21.3 billion in second quarter investment sales, down 12.6% from the previous quarter but up 12.1% 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 second-quarter transaction volume, reaching $5.4 billion and accounting for 25.6% of total activity. The West followed with $5.0 billion, representing 23.6% of the total, while the Southwest recorded $3.7 billion, or 17.6%. The Midwest recorded $3.2 billion in transactions, making up 15.1%, with the Mid-Atlantic and Northeast contributing $2.4 billion, or 11.5%, and $1.4 billion, or 6.7%, respectively.

The average cap rate dipped 1 basis point to 6.46% in the last three months but is up 13 basis points year over year. The Northeast, Southeast, and Southwest regions recorded quarterly declines, the Midwest held flat, and all other regions posted increases.

Private buyers accounted for 54% of multi-tenant industrial acquisitions through the second quarter of 2026, followed by institutional investors at 25%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has remained elevated during the same period.