MarketSnapshot: Multi-tenant retail

The multi-tenant retail sector posted $14.3 billion in second quarter sales volume, down 5.6% from the prior quarter but up 10.5% year over year. Cap rates increased 8 basis points during the quarter to 7.08% and edged up 5 basis points compared with a year ago.

The Southeast region led transaction activity in the second quarter, recording $3.8 billion in volume and accounting for 26.2% of the total. The Southwest followed with $2.7 billion, representing 19.0% of overall volume. The West ranked third with $2.5 billion, or 17.4%, while the Northeast recorded $1.9 billion, representing 13.0%. The Midwest contributed $1.8 billion, or 12.8% of total volume, and the Mid-Atlantic region trailed with $1.7 billion, accounting for 11.6%.

By region, cap rates ranged from a low of 6.27% in the West to a high of 7.87% in the Midwest. All regions, except the Southeast, recorded an increase over the prior quarter. Average cap rates are up 54 basis points from the recent low of 6.54% recorded in the third quarter of 2022.

Private buyers accounted for 57% of multi-tenant retail acquisitions during the second quarter of 2026, followed by institutional investors at 24%. The institutional share has risen sharply from 7% in 2024, while private investment activity has declined 11% over the same period.