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Single-Tenant Net Lease Retail Holds Steady in H2 2025
For single-tenant net lease (STNL) retail in the second half of 2025, Colliers reported a steady but increasingly selective environment, shaped by cautious consumer spending, tariff pressures, elevated construction costs and tighter capital markets. Vacancy held near 4.3% and new supply was still constrained by high development and financing costs.
Sales volume increased to $6.5 billion, a 14% increase from H1 2025. with the drugstore sector alone up 49%. The median cap rate for sales compressed to 6.7%, down 10 basis points, while the median price per square foot fell to $294, 4.9% lower than in H1.
“Deal activity increasingly reflected a preference for smaller format retail assets because of necessity-oriented tenants and investors’ continued focus on liquidity, operational efficiency, and long-term income
durability within the STNL sector,” wrote Anjee Solanki, Colliers national director, Retail Services & Practice Groups | U.S., and Nicole Larson, senior manager, National Retail Research | U.S.
- ◦Lease
- ◦Sale/Acquisition
