Every property type has its own story, supported by data. For the overall classification of single-tenant net lease (STNL), Northmarq has data through the third quarter of 2023. The past is not necessarily a predictor of the future, otherwise nothing would ever decline or improve.

These overall trends (with more segmented data to come over future weeks) show how markets have developed. That doesn't mean, whether for better or worse, they will continue their course. But ignoring what has happened is more dangerous than assuming it represents an unchangeable future.

Generally, the STNL market has been downbeat. Investment sales activity has seen declines in each of the last seven quarters. The all-time high at the end of 2021 has dropped by more than 78%. Rising interest rates hit many hard with a total sales volume for the first nine months of only $31.7 billion. With the Federal Reserve indicating potential rate cuts next year at its December meeting, an end-year rally seems unlikely. Why purchase today when you think you might have a better rate in six months? And why try to jam through a purchase at the end of the year when it's hard to reach people and there's no clear financial advantage in closing a deal right now?