In Q1 2024, single-tenant net lease market continued its consistent performance, according to Northmarq, with investment sales activity soaring by 26% from the prior quarter with levels to $11.2 billion. And while this represents a slight 4.5% decline compared to this time last year, these first three months of 2024 put the market on a promising trajectory to surpass 2023's total.
Average cap rates for the combined net lease sector increased 20 basis points during Q1 to 6.50% – the highest average seen since mid-year 2015, according to Northmarq's report.
Single-tenant office cap rates are the highest at 6.81%, while retail remains the lowest at 6.38%. Year-over-year, however, the net lease industrial sector has seen the most significant increases.
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