Single-tenant investment sales have cooled after a strong end to last year, but the market continues to show selective resilience, particularly in industrial assets, according to Northmarq.
Total investment volume reached nearly $12.9 billion in the first quarter, down 24.1% from the fourth quarter of 2025 but up 0.9% from a year earlier, signaling a market that is stabilizing rather than accelerating.
Industrial properties remained the clear driver of activity, accounting for $7.7 billion in transactions or 59.9% of total volume. That share has expanded significantly from 48.6% a year ago, reinforcing the asset class's continued dominance in the single-tenant space as investors favor properties tied to logistics and distribution demand.
Retail and office activity remained comparatively subdued. Retail transactions totaled $2.7 billion, accounting for 20.9% of the total volume and down 27.2% from last year, while office assets accounted for $2.5 billion or 19.2%, lower than the prior-year share of 24.2%.
Pricing was largely stable. Average cap rates edged down three basis points from the prior quarter to 6.81%, effectively flat with 2025 levels and just four bps higher than a year ago. Industrial assets posted the most notable year-over-year compression.
Investor composition shifted modestly during the quarter. Private buyers remained the largest cohort but declined to 46% of acquisition volume, down from 52% in 2025. Institutional investors increased their share to 28%, roughly eight percentage points higher year-over-year, while REIT and listed participation slipped to 8%. Cross-border capital rose slightly to 11%, broadly consistent with historical norms.
Across property types, buyer profiles varied. Industrial attracted a larger share of institutional capital, while retail remained more heavily driven by private buyers and users, according to the report.
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