2024 Industrial Net Lease Sales and Cap Rates

In third quarter 2024, the single-tenant industrial market remained on a path of reporting increasing sales volume. With $6.35 billion logged in the last three months, third quarter’s performance brings the year-to-date activity level to more than $16.2 billion.

If current momentum stays flat in fourth quarter, the sector would be on pace to just narrowly miss last year’s annual total, but with another 12 percent quarterly jump in activity, as was witnessed this reporting period, the sector will easily surpass last year’s performance.

READ ALSO: Industrial Sales Prices Inched Up in 2024

Average cap rates for net lease industrial transactions have, at least temporarily, leveled off. In the past two years, the market witnessed a series of sharp quarterly increases, taking the average from a low of 5.22 percent at mid-year 2022 to a recent high of 6.51 percent in first quarter 2024. Since then, rates have fluctuated only a few basis points each quarter and now sit at an average of 6.48 percent. By region, the industrial market has a narrower spread than other net lease sectors of just 99 basis points between the Northeast’s low average of 5.84 percent and the Southwest region at 6.83 percent...