{"id":1004688048,"date":"2023-10-31T01:32:28","date_gmt":"2023-10-31T09:32:28","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004688048"},"modified":"2025-11-26T12:33:44","modified_gmt":"2025-11-26T20:33:44","slug":"2023-net-lease-retail-sales-volume-cap-rates","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/2023-net-lease-retail-sales-volume-cap-rates\/","title":{"rendered":"2023 Net Lease Retail Sales Volume &#038; Cap Rates"},"content":{"rendered":"<div class=\"fl-module fl-module-fl-post-content fl-node-pvlrjqug7wyz\" data-node=\"pvlrjqug7wyz\">\n<div class=\"fl-module-content fl-node-content\">\n<div id=\"attachment_1004688049\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/1123_CPE_Invest_Retail.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004688049\" data-attachment-id=\"1004688049\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/2023-net-lease-retail-sales-volume-cap-rates\/1123_cpe_invest_retail\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/1123_CPE_Invest_Retail.jpg\" data-orig-size=\"800,279\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"1123_CPE_Invest_Retail\" data-image-description=\"&lt;p&gt;Source: Northmarq, Real Capital Analytics; analysis includes sales greater than $2.5m&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Source: Northmarq, Real Capital Analytics; analysis includes sales greater than $2.5m&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/1123_CPE_Invest_Retail.jpg?w=800\" class=\"size-full wp-image-1004688049\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/1123_CPE_Invest_Retail.jpg\" alt=\"Source: Northmarq, Real Capital Analytics; analysis includes sales greater than $2.5m\" width=\"800\" height=\"279\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/1123_CPE_Invest_Retail.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/1123_CPE_Invest_Retail.jpg?resize=300,105 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/1123_CPE_Invest_Retail.jpg?resize=768,268 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-1004688049\" class=\"wp-caption-text\">Source: Northmarq, Real Capital Analytics; analysis includes sales greater than $2.5m<\/p><\/div>\n<p>Investment sales activity within the single-tenant net lease retail sector reported a substantial drop off during second quarter 2023. In just the last three months, we\u2019ve seen sales volume plummet nearly 52 percent, as just $1.9 billion in sales were logged for the quarter. Without a resurgence in activity, year-to-date totals put the sector only on pace to reach $12 billion for the year, producing an annual performance that would be on par with levels last seen in 2012.<\/p>\n<p>Still, net lease retail assets are in high demand with investors, even if some have elected to temporarily pause while they evaluate today\u2019s shifting market. Freestanding grocery stores, including brands such as Whole Foods, Stop &amp; Shop, and Walmart Neighborhood Market, as well as discount clubs like BJ\u2019s Wholesale Club, were among the highest priced single-store transactions of the last quarter, suggesting investors and consumers alike continue to view these stores as essential retailers. Also of note, today\u2019s post-pandemic environment has seen a resurgence of interest in fitness centers, with LA Fitness, Planet Fitness and a handful of smaller or regional brands trading in recent months. Drugstores remain popular with net lease investors, as do quick service restaurants, dollar stores, and automotive retailers, among others.<\/p>\n<p>The most significant influence on investment activity levels has been rising interest rates, which subsequently has impacted cap rates. Following a 15-basis point increase over the last three months, the mid-year average sits at 5.83 percent. While additional upward movement is expected, future quarterly cap rate increases for net lease retail aren\u2019t likely to be quite as dramatic as seen during second quarter 2023, pending any major market disrupters. Instead, investors should expect a general upward trend with quarterly basis point changes in the single digits.<\/p>\n<p>\u2014Posted on Oct. 31, 2023<\/p>\n<\/div>\n<p class=\"x_MsoNormal\"><em>John Tagg is the Research Manager at Northmarq. He is responsible for coordinating the production and distribution of research reports that support the company\u2019s commercial real estate brokerage and investment sales teams across local offices nationwide.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Investment sales activity within the single-tenant net lease retail sector reported a substantial drop off during second quarter 2023.<\/p>\n","protected":false},"author":3889,"featured_media":1004688049,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37765,37768],"tags":[],"class_list":["post-1004688048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rc-cap-rates","category-rc-volume"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>2023 Net Lease Retail Sales Volume &amp; 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