Southeast Leads Multi-Tenant Industrial Investment With $5.2B In Q3 Sales

The U.S. multi-tenant industrial sector posted $17.7 billion in investment sales in Q3 2025—a 2.8% decline from the previous quarter but a slight 0.5% increase year-over-year—according to Northmarq’s Q3 2025 Multi-Tenant Report.

Despite the modest quarterly dip, the sector continues to demonstrate strong fundamentals, supported by durable tenant demand, favorable demographics, and long-term structural tailwinds.

Regionally, the Southeast led all markets with $5.2 billion in third-quarter transactions, representing 29.4% of national volume. The West followed with $4.3 billion (23.9%), and the Southwest recorded $3.8 billion (21.6%). Rounding out the quarter were the Midwest with $1.9 billion (10.6%), the Northeast with $1.4 billion (8%), and the Mid-Atlantic with $1.2 billion (6.5%).

Year-to-date multi-tenant sales reached $53.9 billion, compared with $71.1 billion for all of 2024 and $125.3 billion at the 2021 peak. The West and Southeast were the largest contributors at $13.5 billion and $13.1 billion, respectively, followed by the Southwest at $11 billion. The Midwest totaled $6.6 billion, the Northeast $5.1 billion, and the Mid-Atlantic $4.2 billion.

Cap rates continued their upward trend, rising five basis points quarter-over-quarter to an average of 6.4%, and 20 basis points year-over-year. The Midwest, Northeast, and Southeast saw slight declines, while the Mid-Atlantic, Southwest, and West experienced modest increases. By the end of Q3 2025, cap rates averaged 7.11% in the Mid-Atlantic, 7.53% in the Midwest, 6.13% in the Northeast, 6.35% in the Southeast, 6.68% in the Southwest, and 5.69% in the West.

Private buyers remained the most active purchasers, accounting for 57% of Q3 acquisitions. Institutional investors comprised 21% of activity—a share that has steadily grown since 2023—while international buyers represented 10% and REITs 4%.

Source: GlobeSt