Industrial NNN assets dominate investor allocations as e-commerce fulfillment and supply chain reshoring drive unprecedented demand. Last-mile distribution near major metros commands the strongest premiums. Secondary logistics markets (Austin, Phoenix, Charlotte) offer 50-75 bps higher yields than tier-1 metros with similar fundamentals.
Overweight. Target tier-2 logistics markets where cap rates are 50-75 bps higher than gateway cities. Focus on 100K-500K SF last-mile facilities near population centers.
Side-by-side comparison of all NNN sectors
| Sector | Outlook | Cap Rate | Cap Δ YoY | Deal Flow | Vacancy | Renewal | Action |
|---|---|---|---|---|---|---|---|
| warehouseIndustrial & Logistics | bullish | 5.1% | -25 bps | 68% | 6.8% | 96% | Overweight. |
| storefrontEssential Retail | bullish | 6.1% | -10 bps | 14% | 4.8% | 88% | Market weight. |
| restaurantQuick-Service Restaurant | bullish | 5.45% | -15 bps | 10% | 2.1% | 92% | Overweight IG operators. |
| local_hospitalMedical & Healthcare | bullish | 5.9% | -20 bps | 5% | 8.2% | 90% | Overweight. |
| sellOff-Price & Discount | neutral | 5.8% | -10 bps | 4% | 3.5% | 91% | Market weight. |
| domainOffice | bearish | 7.8% | +45 bps | 3% | 18.4% | 68% | Underweight. |
| auto_awesomeSpecialty & Alternative | neutral | 5.6% | -15 bps | 6% | 5.5% | 87% | Selective overweight. |
Weekly sector analysis, cap rate movements, and investor positioning updates.
Sector outlook and market data are for informational purposes only and do not constitute investment advice. Cap rates, vacancy rates, and deal flow percentages are estimates based on publicly available research from CBRE, JLL, Cushman & Wakefield, CoStar, and industry reports. Actual market conditions vary by geography, tenant, and property specifics. Data as of Q2 2026. Consult qualified advisors before making investment decisions.