2026 Retail Net Lease Sales Volume and Cap Rates
Single-tenant retail sales slowed sharply in the first quarter, while cap rates edged lower to 6.84 percent.
The single-tenant retail sector posted $2.7 billion in first-quarter sales volume, down 33.9 percent from the prior quarter and 22.4 percent compared to the same period last year. Cap rates recorded slight downward pressure, declining 5 basis points during the quarter to 6.84 percent, and were also down 5 basis points year over year.
The Southeast region led transaction activity, recording $673.3 million in volume and accounting for 25.1 percent of the total. The West followed with $632.6 million, representing 23.6 percent of overall volume. The Northeast ranked third with $442.7 million, or 16.5 percent, while the Southwest recorded $407.8 million, representing 15.2 percent. The Midwest contributed $335.4 million, or 12.5 percent of total volume, and the Mid-Atlantic region trailed with $194.6 million, accounting for 7.2 percent.
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By region, cap rates ranged from a low of 5.98 percent in the Northeast to a high of 7.69 percent in the Midwest. All regions, except the Midwest and West, recorded a modest decline from the prior quarter. Average cap rates are up 124 basis points from the recent low of 5.60 percent recorded in the fourth quarter of 2022.
Private buyers accounted for 69 percent of single-tenant retail acquisitions through the first quarter of 2026, followed by REIT/Listed investors at 15 percent and domestic users/others at 10 percent. The private share increased by 3 percent from 2025, while institutional investment activity fell by 6 percent. REIT/Listed and cross-border investment edged slightly higher by 1 percent from 2025.
—Posted on Sept. 28, 2026
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