2020 Net Lease Industrial Sales Volume & Cap Rates

Single-tenant industrial sales volume versus average cap rates, updated quarterly.
Source: Stan Johnson Co. Research, Real Capital Analytics
Source: Stan Johnson Co. Research, Real Capital Analytics

The net lease industrial sector has been the darling of the industry in recent years, and despite certain sectors coming under fire during the COVID-19 health crisis, manufacturing and logistics have done well to prove their importance. After posting back-to-back years of record investment sales activity, the single-tenant industrial sector reported a very healthy $7.9 billion in sales during Q1 2020. Granted, much of the activity occurred in January and February, with market conditions slowing significantly in March. But strong momentum from the previous year was enough to buoy quarterly totals. Industrial cap rates, while not quite as stagnant as we’ve seen in the retail sector, for example, still have yet to show much overall movement. Average industrial cap rates ended Q1 2020 at 6.25 percent–down 5 basis points from year-end 2019 but still very much on par with quarterly averages reported since 2017.

Focusing on business development, industry and client-specific research, and the analysis of local and national market trends, Lanie Beck has been the Director of Research for Stan Johnson Co. since 2013.

—Posted on Jun. 24, 2020