Capital poured into the booming single-tenant net lease sector in the first quarter, with sales volume up 30% year-over-year. 

According to recent research from Stan Johnson Company, the STNL market reported activity at around $21.7 billion. Over the last three months, the sector saw "negligible" movement in the overall cap rate, which moved down 3 bps to 5.84%.

"Following a record-setting 2021 with unprecedented levels of investment sales activity in the final quarter of the year, there was no expectation that the single-tenant net lease market was positioned for back-to-back quarters of such volume," Stan Johnson Company analysts note in a report on the Q1 data. "Instead, predictions called for just enough carried momentum to position the market well enough to have a respectable follow-up year. Despite current headwinds—with inflation raging and interest rates rising—the market delivered on those predictions for the most part."