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Single-Tenant Net Lease Sales Poised to Exceed 2020 Total
Sales of single-tenant net lease (STNL) properties reached $20.7 billion nationally during the third quarter of 2021, representing the sixth strongest quarter on record, Stan Johnson Company reported. As overall cap rates drop to 6.01%, the STNL market is poised to exceed 2020’s total, with full-year sales projected to reach $75 billion.
For quarterly growth, the best performing STNL sector was office, up 30% from Q2 to $7 billion. On a dollar-volume basis, the leader was industrial, whose $10.7 billion accounted for more than half the STNL total, according to SJC.
However, although retail property sales slipped 31% compared to Q2, the sector led in terms of cap rate compression with a 10-basis point drop. Office cap rates increased by four bps.
Overall, private buyers have represented 39% of STNL investment activity year to date, with U.S.-based institutional investors representing 30% . This distribution is on par with 2020’s figures.
- ◦Sale/Acquisition
