Single-Tenant Retail Transactions Surge 23% as Investors Chase Net-Lease Assets
Event summary
- Marcus & Millichap reports 23% YoY increase in single-tenant retail transaction count in 2025, with dollar volume up 20%.
- Private investors accounted for 75% of buyer dollar volume in STNL retail transactions.
- Vacancies remain below long-term averages while construction activity is near historic lows.
- Marcus & Millichap published two national research reports on STNL retail sector during ICSC Las Vegas conference.
The big picture
Marcus & Millichap's reports highlight a resilient single-tenant retail sector, with transaction activity surging despite economic uncertainty. The data suggests investors are capitalizing on a compelling acquisition window driven by a gap to replacement cost and limited new development. This trend underscores the sector's long-term fundamentals, particularly for necessity-based retailers, even as financing conditions improve.
What we're watching
- Investor Demand
- How sustained investor interest in high-quality net-lease retail assets will affect pricing dynamics amid economic uncertainty.
- Market Recovery
- Whether the single-tenant market can maintain its recovery pace despite macroeconomic headwinds and higher interest rates.
- Construction Activity
- The pace at which construction activity will rebound from historic lows and its impact on supply-demand balance.
Related topics