MarketSnapshot: Multi-tenant industrial

The multi-tenant industrial sector recorded over $31 billion in third quarter investment volume, up 25.6% from the previous quarter and 45.1% year over year. The sector continues to outperform, supported by strong tenant demand and long-term foundational tailwinds.

The Southeast led the country in transaction volume during the third quarter, accounting for 24.9% of total volume at $7.7 billion. The West trailed close behind at $7.5 billion, making up 24.2% of volume. The Southwest recorded $6.0 billion in sales, or 19.3% of nationwide volume, while the Midwest posted $4.2 billion or 13.5%. The Mid-Atlantic recorded $2.4 billion in sales, making up 7.8%, while the Northeast posted just under $2 billion in sales, accounting for 6.4% of nationwide volume.

Cap rates averaged 6.46% during the third quarter, up 2 basis points from the second quarter and 7 basis points from one year ago. The Southeast was flat from the previous quarter, but the Mid-Atlantic region recorded a quarterly decline, down 9 basis points from the second quarter. Only the Southeast posted a year-over-year dip in cap rates, down 23 basis points to 6.11%.

Private buyers have accounted for half of multi-tenant industrial volume this year, followed by institutional buyers at 30%. The share of institutional buyers in this space has been gradually increasing since 2023.