The country’s single-tenant net-lease market ended 2024 with a burst of activity, wrapping the year with solid growth in the fourth quarter.
That’s the good news from Northmarq‘s fourth quarter 2024 single-tenant market snapshot.
According to Northmarq’s report, the single-tenant net-lease market saw $13.8 billion in sales in the fourth quarter across the country. That’s a jump of 57.6% from the same quarter a year earlier. It’s also an increase of 19.4% from the third quarter of 2024.
In its report, Northmarq said that this flurry of year-end activity is a positive sign for 2025. The increase in sales could represent a resurgence of confidence in this market sector, Northmarq said.
In especially good news for a struggling sector, Northmarq reported sales transaction volume in the single-tenant net-lease office sector rose 36.4% in the fourth quarter when compared to the third quarter of last year.
Another interesting statistic? Private investors continue to dominate buyer activity in single-tenant net-lease properties, with Northmarq reporting that they made up 42% of the buyer pool during 2024.
Northmarq reported, too, that cap rates have climbed steadily for nine consecutive quarters and averaged 6.78% as of the end of the fourth quarter. That’s an increase of nine basis points from the third quarter of last year.
When compared to the fourth quarter of 2023, though, cap rates in this sector have jumped 51%.
