SRS Capital Markets Reports $1.2 Billion Transaction Volume Mid-Year 2025, Signaling Strong Market Activity

SRS Capital Markets has reported a robust $1.2 billion in transaction volume by mid-year 2025, marking a substantial increase compared to the same period in 2024. This surge in activity, encompassing 350 properties sold across the U.S., underscores a resilient commercial real estate market despite persistent higher interest rates. Matthew Mousavi, Senior Managing Principal and Co-Head of National Net Lease at SRS Capital Markets, attributes this growth to an improving lending environment and the strategic deployment of sidelined capital towards credit and quality assets.

The market's positive trajectory is further bolstered by new tax legislation benefiting commercial real estate, particularly assets qualifying for accelerated and bonus depreciation. This has spurred demand for properties such as C-Stores, car washes, and other fee simple assets, alongside an increase in 1031 exchange investors. Mousavi notes, 'Investors are actively seeking quality opportunities, with a noticeable equilibrium on yield leading to more transactional activity.'

Patrick Nutt, also a Senior Managing Principal and Co-Head of National Net Lease at SRS Capital Markets, observed that sellers have adjusted their pricing expectations, facilitating deals at market prices that were previously unattainable. The team has identified a strong competition for class A assets in core markets, while class B and C properties face a thinner buyer pool. Nutt emphasized, 'Properties with top-tier tenants and passive leases continue to trade near peak pricing, whereas those with lease or environmental challenges have seen greater pricing adjustments.'

Drive-thru buildings have emerged as a top-performing asset type, favored for their adaptability, visibility, and traffic. The preference for absolute NNN lease structures and the tenant's credit profile are critical factors influencing transaction speeds. Additionally, single-tenant net-leased assets are attracting a growing pool of investors looking for stable alternatives to the volatile stock market. For more insights into SRS Capital Markets' performance and trends, visit https://srsre.com.