SRS Capital Markets Reports $1.2 Billion in Transaction Volume by Mid-Year 2025

SRS Capital Markets has announced a remarkable achievement in the commercial real estate sector, closing $1.2 billion in transaction volume by mid-year 2025. This figure represents the sale of 350 properties across the United States and signifies a 30% increase in deal volume compared to the same period in 2024. The announcement underscores the resilience and growth of the commercial real estate market, even in the face of persistent higher interest rates.

Matthew Mousavi, Senior Managing Principal and Co-Head of National Net Lease at SRS Capital Markets, highlighted the improving transactional activity and the strategic expansion of the company's broker count and support staff. Mousavi pointed to the gradual improvement in the lending environment and the increasing deployment of sidelined capital towards credit and quality assets as key drivers behind the surge in demand. Notably, necessity-based and value-oriented retail, credit industrial, logistics, and medical assets are experiencing heightened interest.

The new tax legislation, particularly provisions on accelerated and bonus depreciation, is expected to further stimulate demand for qualifying assets such as C-Stores, car washes, and other fee simple assets. Additionally, the rise in 1031 investors is anticipated to contribute to the growing transactional activity. Mousavi's insights reveal a market where investors remain active, seeking quality opportunities amidst a more balanced yield environment.

Patrick Nutt, Senior Managing Principal and Co-Head of National Net Lease at SRS Capital Markets, discussed the adjustment in sellers' pricing expectations, which has facilitated deals at market pricing that were previously unattainable. The market has shown strong competition for class A assets in core markets, while class B and C properties face a thinner buyer pool. Nutt also noted the slow adjustment in cap rates, with premium properties still trading close to peak pricing, whereas those with tenancy or lease issues have seen more significant pricing adjustments.

The National Net Lease team identified drive-thru buildings as among the best-performing asset types, thanks to their adaptability for long-term leasing, strategic locations, and lower price points that attract liquidity and demand. The preference for absolute NNN lease structures and the credit profile of tenants are critical factors influencing transaction speeds. Single-tenant net-leased assets are increasingly appealing to small-to mid-sized investors looking for stable alternatives to the volatile stock market.

For more information on SRS Capital Markets and their services, visit https://www.srsre.com.