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National  + Net Lease  | 
Cap rates on single-tenant retail and industrial properties compressed in Q4 2021.

Q4 Propels Net Lease Sales to New Annual Record 

The single-tenant net lease market registered its strongest quarter of investment sales activity in history during the final three months of 2021, outpacing the previous high-water mark by more than 46%, Stan Johnson Company (SJC) reported. Fourth-quarter 2021 saw $36.3 billion in sales, which drove annual totals north of $96.5 billion and set a new annual sales record for the single-tenant sector. 

Year-over-year, single-tenant net lease sales volume was up 49%, according to SJC. The annual total was 19% higher than the previous record set in 2019. 

“Along with other factors, the lack of available supply has impacted cap rates across the industry,” according to SJC. Net lease industrial and retail cap rates compressed quarter-to-quarter as well as Y-O-Y. Only the net lease office sector reported higher year-over-year cap rates, ending 2021 at 6.27%, “although a four-basis-point increase is hardly noteworthy.” 


Inside The Story

Stan Johnson Company

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition
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