MarketSnapshot: Single-tenant industrial

Industrial remains the most active single-tenant sector, with $8.4 billion in second quarter transactions. Sales volume increased 4.7% from the first quarter and 33.1% year over year. Average cap rates rose 19 basis points from the prior quarter and 21 basis points from one year ago.

The West region led transaction activity in the second quarter, recording over $2.1 billion in sales volume and accounting for 25.4% of the total. The Midwest followed closely with $2.1 billion, representing 25.2% of overall volume. The Southeast ranked third with $1.6 billion, or 19.0%, while the Southwest recorded $1.4 billion, representing 16.9%. The Mid-Atlantic contributed $0.7 billion, or 7.9% of total volume, and the Northeast region trailed with $0.5 billion, accounting for 5.4%.

By region, cap rates ranged from a low of 6.02% in the West to a high of 7.40% in the Midwest. All regions recorded increases over the prior quarter. Average cap rates are up 147 basis points from the recent low of 5.21% recorded in the second quarter of 2022.

Private buyers accounted for 41% of single-tenant industrial acquisitions through the second quarter of 2026, followed by institutional investors at 27%. The private share fell by 10% from 2025, while institutional investment activity increased by 5% over the same period. REIT/Listed acquisitions fell from 11% of investment activity in 2024 to 6% as of the second quarter of 2026. The share of cross-border investment activity increased to 17% of deal volume, up from 11% in 2025.