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Two Washingtonian office building Gaithersburg MD Washington DC commercial real estate

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. 

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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 GlobeSt.com 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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