MarketSnapshot: Q2 2020

  • Market data, charts & graphs of current and historical trends across single-tenant office, industrial & retail properties

  • Overall market trends

  • Market summary & analysis

  • Economic data points

Slow, but expected: the STNL market posts lackluster but unsurprising sales totals for Q2’20

As anticipated, investment sales activity dropped off considerably in second quarter 2020 across all property sectors, firmly placing the single-tenant net lease market out of reach of another record setting year.

But all is not lost. The retail sector, for example, showed a surprising level of endurance compared to the rest of the market, as it witnessed the smallest quarter-to-quarter decline in sales volume, falling just 30.2 percent from first quarter 2020 activity totals. Granted, the retail sector had the smallest activity totals in terms of dollar amount, and therefore didn’t have as far to fall. But the relative sustainability of investor activity in the sector should be viewed as good news.

Investor demand by no means dropped off entirely, and the start of third quarter actually saw a welcomed increase in activity levels across all sectors that will hopefully support a second half rebound. While it’s still too early to tell, the next few months of deal volume will provide additional insight into where the market can expect to end the year. Currently however, the market is on track to reach about $50.0 billion in sales volume, resulting in annual totals that compare with levels seen in 2013 and 2014.

Pent up demand and a recent burst of new, high-quality on-market supply, however, may help drive sales in the second half of the year and provide enough momentum to end the year strong, even if record-setting volume totals seen in the last two years aren’t repeatable.

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