The SRS Capital Markets team has announced that at mid-year 2025, the team closed to date $1.2 billion in transaction volume. This accounts for 350 properties sold across the U.S. According to SRS, this activity is significantly ahead of its 2024 volume at mid-year.

“Despite the higher interest rate environment persisting into 2025, we’re seeing transactional activity continue to improve with overall deal volume steadily increasing year over year. As a group we’ve transacted over 350 properties year to date, with our deal volume up year over year in excess of 30%. As a company we’ve also continued to grow our broker count and support staff levels in anticipation of continued improvement within capital markets,” said Matthew Mousavi, Senior Managing Principal and Co-Head of National Net Lease, SRS Capital Markets.

Mousavi added, “With the lending environment slowly improving, and sidelined capital being deployed in greater volume towards credit and quality, we’re seeing both the public and private markets showing positive signs and increased demand, particularly for necessity based and value oriented retail, credit industrial, logistics and medical assets. Further, with the new tax legislation benefiting CRE – with accelerated and bonus depreciation being a focal point of the new tax bill – we expect further demand and volume for certain bonus depreciation-qualifying assets like C-Stores, car wash and other fee simple assets, along with greater volumes of 1031 investors as transactional activity increases. Across the board, investors are still active and seeking quality opportunities, and with more of an equilibrium on yield, there is more transactional activity taking place with a sizeable increase in our volume closed Q1 2025 vs the prior year,” he added.

SRS Capital Markets leadership shared that over the course of the past few years, sellers have adjusted their pricing expectations and are increasingly moving with the market, resulting in deals getting done at market pricing that wasn’t possible over the past 12 to 24 months. The team has seen strong competition continue for class A assets in core markets, while class B and C product continues to lag with a thinner buyer pool.

“While cap rates have continued to expand, the rate of movement has been more of a slow adjustment versus a major re-set in pricing. Properties that feature the best tenants, quality real estate and passive leases are still trading not far from peak pricing while properties with a specific tenancy that has over-supplied the market or those with some sort of lease or environmental blemish have observed the greatest adjustment in pricing,” said Patrick Nutt, Senior Managing Principal and Co-Head of Natioal Net Lease, SRS Capital Markets.

Best performing asset types identified by the National Net Lease team include:

• Drive-thru buildings: Because of the wide range of tenants, the buildings are suited for long-term if the property needs to be re-leased. These locations typically have convenient access, strong visibility, and high traffic counts. Their price points are also lower where there is more liquidity and demand in the market.
• Because net lease buyers want “passivity,” they gravitate towards properties that have absolute NNN lease structures without landlord expense responsibilities as opposed to those that are double net or where the landlord has expense and/or management exposure. Another criteria is the credit profile of the tenant/operator and long-term outlook for that retailer. Because the client wants to know if the rent is replaceable if the tenant vacates, properties that have higher than market rents per square foot have been slower to transact.
• Single-tenant net-leased assets are drawing an expanding buyer pool of small-to mid-sized investors seeking alternatives to the volatile stock market as well.

About SRS Real Estate Partners

Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with 29 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.

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