The US multi-tenant industrial sector recorded $17.7 billion in investment sales during the third quarter of 2025, reflecting a 2.8% decline from the previous quarter but a 0.5% increase year-over-year, according to Northmarq’s Q3 2025 Multi-Tenant Report. While overall volume moderated slightly, the sector remains strong, underpinned by resilient tenant demand, favorable demographics and long-term structural factors that favor industrial assets.
Regionally, the Southeast led the nation in third-quarter activity, generating $5.2 billion in transactions, which accounted for 29.4% of total volume. The West followed with $4.3 billion (23.9%), while the Southwest recorded $3.8 billion (21.6%). The Midwest contributed $1.9 billion (10.6%), the Northeast $1.4 billion (8%), and the Mid-Atlantic $1.2 billion (6.5%).
Year-to-date, cumulative multi-tenant industrial sales totaled $53.9 billion, compared with $71.1 billion for all of 2024 and $125.3 billion in 2021. The Southeast and West were the largest contributors with $13.1 billion and $13.5 billion, respectively, followed by the Southwest with $11 billion. The Midwest accounted for $6.6 billion, the Northeast $5.1 billion, and the Mid-Atlantic $4.2 billion.
Average cap rates for multi-tenant industrial properties rose five basis points quarter-over-quarter to 6.4%, marking a 20-basis point increase year-over-year. Regional variations were notable: the Midwest, Northeast and Southeast experienced modest declines, while the Mid-Atlantic, Southwest and West recorded slight increases. By the end of Q3 2025, regional cap rates stood at 7.11% in the Mid-Atlantic, 7.53% in the Midwest, 6.13% in the Northeast, 6.35% in the Southeast, 6.68% in the Southwest and 5.69% in the West.
Private buyers remained the dominant force in the market, accounting for 57% of multi-tenant industrial acquisitions, followed by institutional investors at 21%. The share of institutional acquisitions has gradually increased since 2023, while private investment activity has stayed consistently elevated. International buyers represented 10% of the total volume and REITs accounted for 4%.
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