The single-tenant net lease market is likely to end the year strong, with sales activity on track to make 2022 the third strongest year in history.
That's according to a recent analysis from Northmarq, which notes that if current activity levels carry over to Q4, the year will claim $74 billion in annual sales volume. In particular, the industrial market is set to report its second strongest year on record, while the office and retail sectors are more likely to have closer to average years.
Overall average STNL cap rates leveled out during the third quarter as sales activity declined for the third straight quarter. Private buyers have the largest share of the market, according to the report, and while the market is "significantly" off-pace to reach 2021 numbers, strong annual performance is still within reach.
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