Marcus & Millichap Releases New Single-Tenant Retail Reports as Industry Gathers at ICSC Las Vegas
Marcus & Millichap Releases New Single-Tenant Retail Reports as Industry Gathers at ICSC Las Vegas
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single-tenant net-leasefinancial
A single-tenant net-lease is a commercial property leased to one tenant under an agreement where the tenant pays most or all ongoing property costs — such as taxes, insurance and maintenance — in addition to rent. For investors it matters because this structure can provide steady, low-management income like a long-term subscription, but the investment’s value and risk hinge on that single tenant’s creditworthiness and the lease length.
net-lease retailfinancial
Net-lease retail describes commercial shopping properties leased to a single tenant who, in addition to paying rent, also covers some or all property expenses such as taxes, insurance and maintenance. For investors, that structure often means steadier, more predictable cash flow and lower day-to-day landlord work, but also concentrated tenant risk—like owning a vending machine that pays for its own electricity: simple income, but dependent on one operator.
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CALABASAS, Calif.--(BUSINESS WIRE)--
Marcus & Millichap (NYSE:MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, has published two new national research reports highlighting continued strength in the U.S. single-tenant net-lease (STNL) retail sector as retail real estate professionals gather at the ICSC Las Vegas conference.
The reports, Single-Tenant Net Lease Retail 1H/26 National Report and the May 2026 U.S. Single-Tenant Net-Lease Retail Investment Report, found that STNL retail transaction activity rose sharply in 2025, with transaction count up 23% year over year and dollar volume increasing 20%. The reports also note that vacancies remain below long-term averages while construction activity is near historic lows.
“Despite ongoing economic uncertainty, investor demand for high-quality net-lease retail assets remains exceptionally strong,” said Gregory A. LaBerge, chief client officer, Marcus & Millichap. “Retailers focused on necessity, convenience and value continue to expand, supporting long-term fundamentals across the sector.”
According to the reports, private investors accounted for approximately 75% of buyer dollar volume in STNL retail transactions, while investors continue to favor assets with strong tenant credit and long-term lease structures.
“The reset and recovery in the single-tenant market continues despite macroeconomic headwinds and higher-than-expected interest rates,” said Hessam Nadji, president and chief executive officer, Marcus & Millichap. “Prices have recalibrated while financing conditions have improved, fueling more activity. More buyers see a compelling acquisition window, driven by a meaningful gap to replacement cost and limited new development. As a result, realistically priced assets attract multiple offers.”
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. Marcus & Millichap closed 8,818 transactions with a sales volume of $50.8 billion in 2025. The company had 1,808 investment sales and financing professionals in more than 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate at year end. For additional information, please visit www.MarcusMillichap.com.
