MarketSnapshot: Multi-tenant overall market

The multi-tenant investment sales market recorded $67.8 billion in transaction volume in the third quarter, marking an 18.1% increase from the previous quarter. Compared to one year ago, nationwide volume is up 24.4%.

Industrial properties led the nation in sales by a wide margin, accounting for 45.8% of total volume with $31 billion in sales during the third quarter. Multi -tenant office sales made up 33.5% of total volume with $22.7 billion. This sector recorded the greatest quarterly increase at 31.8%. Retail trailed, recording 20.8% of nationwide sales at $14.1 billion, a decline of 9.1% from the previous quarter.

Overall cap rates increased in the third quarter, rising 4 basis points to 7.05%. Compared to one year ago, cap rates are 7 basis points higher. All sectors recorded cap rate increases, with industrial and retail properties each rising 2 basis points from the previous quarter ,while the office sector posted an increase of 9 basis points.

The buyer distribution was similar across all multi -tenant sectors. Private buyers represented over half of all sales at 53%, while institutional buyers made up 25%. International buyers accounted for 8% of volume, while REITs made up 5% nationwide.