Rising cap rates and higher borrowing costs combined to produce a volatile year for net lease retail investors. After a promising start, the year ended on a lackluster note, with just $2.44 billion in investor activity during the quarter, according to Northmarq’s most recent single-tenant retail report. That represented a 5.4% quarter-over-quarter decrease but a 5.4% year-over-year increase.
Annual investment sales activity reached $11.3 billion, down from $12.5 billion last year. Annual retail sales volume peaked in 2021 at $28.8 billion.
Sales volume was strongest in the Southeast at $604 million during the quarter. The West had $580 million in sales volume and the Northeast had $456 million.
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