What is a single-tenant vs. multi-tenant industrial property?

Single-tenant industrial: a building designed and occupied by one tenant; examples include an Amazon fulfillment center (1M+ sq ft occupied entirely by Amazon) or a Caterpillar parts manufacturing facility; the entire building is configured for that tenant's specific operations. Multi-tenant industrial: a building divided into multiple suites or bays occupied by different tenants; common for smaller industrial users needing 5,000-50,000 sq ft; often called 'flex industrial' or 'small bay industrial.' Single-tenant advantages: longer lease terms (10-20 years for a facility a tenant has heavily invested in vs. 2-5 years for small flex space); net lease structure more common; credit quality of single large tenants is typically better than small business multi-tenant occupants. Single-tenant disadvantages: 100% vacancy when the tenant vacates vs. partial vacancy in multi-tenant; less flexibility to change tenant mix. STAG's focus: STAG targets single-tenant industrial buildings priced $5-30M — too small for large-cap REITs but too large for most private investors; a distinct acquisition niche with less institutional competition.

How does office real estate exposure threaten commercial REITs?

Post-COVID office market shift: COVID demonstrated that office work can be done remotely for many knowledge workers; even as restrictions ended, many employers adopted hybrid work (2-3 days in office); this reduced per-employee office space needs substantially; companies began downsizing office space at lease renewal. Current conditions: national office vacancy rates have risen to 18-22% (historically high); effective rents have declined as landlords offer large free rent and tenant improvement allowances; office valuations have fallen 30-50% in many markets from pre-COVID peaks; some major buildings have been surrendered to lenders. Gladstone's exposure: Gladstone's 20-30% office properties face leasing uncertainty as leases expire; secondary market office space is particularly challenged because tenants in smaller cities have more alternatives; Gladstone has been proactively selling office assets but the process is slow in a down market. Why office is existentially challenged: unlike industrial or apartments (where demand is structurally growing), office demand is structurally contracting as the same number of workers need less space; this supply/demand imbalance makes office the most challenged of the major commercial real estate sectors.

What secondary and tertiary markets do Gladstone and STAG target?

Market tier definitions: primary markets (gateway cities) — New York City, Los Angeles, San Francisco, Chicago, Boston, Washington DC, Seattle; the largest, most liquid markets; institutional capital heavily concentrates here; cap rates are lowest. Secondary markets — Atlanta, Dallas-Fort Worth, Phoenix, Denver, Minneapolis, Nashville, Charlotte; large metros with active economies but less institutional saturation; typically 50-100 basis point cap rate premium over gateway markets. Tertiary markets — smaller cities with populations 100,000-500,000; examples include Knoxville, TN; Greenville, SC; Lexington, KY; fewer institutional buyers; higher cap rates compensate for lower liquidity. Why target secondary/tertiary: smaller REITs cannot compete dollar-for-dollar with institutional capital for primary market assets; in secondary and tertiary markets, smaller REITs can acquire assets at higher cap rates because institutional competition is lower; higher initial cap rates provide better income yield and more margin of safety. Trade-offs: secondary/tertiary market assets may have lower rent growth, less tenant depth, less liquidity, and more vulnerability to local economic downturns; the higher cap rate compensates for these additional risks.

brimindinvest.com / compare / good-vs-stagLIVE

GOOD

Gladstone Commercial Corporation · Real Estate - Diversified Net Lease (Office & Industrial)

$12.07

-2.35% this month

VERSUS

⟷

COMPARE

STAG

STAG Industrial, Inc. · Real Estate - Industrial / Single-Tenant Net Lease

$37.80

+0.24% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

GOOD

1

STAG

1

MIXED SETUP

Comparison scoreboard

MIXED SETUP

AI Score

GOOD N/A

STAG 37.0

1Y Return

GOOD -8.19%

STAG ✓+7.72%

Fwd P/E

GOOD 73.15

STAG N/A

Target Up.

GOOD ✓+14.95%

STAG +9.91%

Op. Margin

GOOD N/A

STAG N/A

Metrics last refreshed: 6/20/2026

Quick take

GOOD vs STAG Stock Comparison: AI Score, Valuation, Performance and Upside

GOOD (Gladstone Commercial) and STAG (STAG Industrial) are both monthly-dividend-paying net lease REITs — Gladstone Commercial is a diversified office/industrial REIT in secondary markets managing its office exposure decline, while STAG Industrial is a pure-play industrial REIT with 570+ single-tenant buildings across 40+ states providing clean industrial exposure with monthly income.

GOOD vs STAG is externally managed office/industrial net lease REIT transitioning from office to industrial in secondary markets (Gladstone Commercial's secondary market focus, monthly dividends, and office-to-industrial portfolio remix — managing legacy office risk while pursuing better pricing in smaller markets) versus pure-play single-tenant industrial monthly income REIT with broad national diversification (STAG Industrial's 100% industrial concentration, 570+ properties in 40+ states, and consistent monthly dividend growth — the pure-play industrial income compounder without office drag).

Live analysis · updated 6/20/2026

GOOD and STAG are closely matched — they split the tracked metrics evenly. STAG has delivered stronger 1-year price return (+7.72% vs -8.19% for GOOD). Analyst consensus implies meaningfully more upside for GOOD (+14.95%) than for STAG (+9.91%).

Normalized 1Y performance

GOOD

STAG

Recent returns

GOOD

STAG

Analyst price targets & sentiment

GOOD · 4 analysts

Price target range

analyst low$12.50
analyst high$15.00
analyst mean$13.88
current price$12.07

+15.0% upside to analyst mean

STAG · 11 analysts

STRONG BUYHOLDSTRONG SELL

Buy (2.5/5.0)

Price target range

analyst low$38.00
analyst high$45.00
analyst mean$41.55
current price$37.80

+9.9% upside to analyst mean

Who should consider this stock?

GOOD may suit investors who:

→Want monthly dividend income from a diversified net lease REIT and believe Gladstone's transition from office to industrial will improve portfolio quality
→See value in Gladstone's secondary market focus as providing better acquisition cap rates than institutional-competition-heavy primary markets
→Accept the remaining office exposure risk and external management fee structure in exchange for the higher starting dividend yield

STAG may suit investors who:

→Want pure-play industrial real estate income through monthly dividends with exposure to e-commerce logistics infrastructure growth
→Value STAG's broad diversification across 40+ states and 100+ tenants as providing revenue resilience without concentration risk
→Prefer a pure-play industrial REIT with no legacy office exposure and a consistent track record of monthly dividend payments since 2011

Performance & AI score

Metric	GOOD	STAG
AI score	N/A	37.0
AI rank	N/A	#1450
Latest close	$12.07	$37.80
1M return	-2.35%	+0.24%
6M return	+15.18%	+2.26%
1Y return	-8.19%	+7.72%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	GOOD	STAG
1Y ago	$10.18K (+1.8%) started 2025-06-18	$11.15K (+11.5%) started 2025-06-18
5Y ago	$13.84K (+38.4%) started 2021-06-18	$15.05K (+50.5%) started 2021-06-18
10Y ago	$54.59K (+445.9%) started 2016-06-20	$46.06K (+360.6%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	GOOD	STAG
Market cap	$589.33M	$7.38B
Trailing P/E	67.06	29.30
Forward P/E	73.15	N/A
Price/Sales	3.56	8.54
EV/Revenue	9.64	12.31
Analyst target	$13.88	$41.55
Target upside	+14.95%	+9.91%

Growth, profitability & risk

Metric	GOOD	STAG
Revenue growth	11.80%	9.10%
Earnings growth	84.40%	-34.70%
EPS growth	+84.40%	-34.70%
FCF margin	+47.15%	+52.94%
Operating margin	N/A	N/A
Profit margin	12.74%	28.26%
ROIC proxy	6.15%	6.92%
Return on equity	6.15%	6.92%
Dividend yield	9.73%	4.03%
Beta	1.07	0.98
Debt/equity	252.80	88.15
Current ratio	1.92	1.62
Quick ratio	1.47	0.90

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

GOOD max drawdown25.38%

STAG max drawdown9.44%

GOOD max wkly drop7.23%

STAG max wkly drop6.01%

5Y risk snapshot

GOOD max drawdown53.31%

STAG max drawdown42.22%

GOOD max wkly drop14.62%

STAG max wkly drop16.97%

10Y risk snapshot

GOOD max drawdown66.26%

STAG max drawdown45.08%

GOOD max wkly drop50.51%

STAG max wkly drop28.24%

Performance metrics by period

Period	Metric	GOOD	STAG
1Y	Growth	-8.19%	+7.72%
	CAGR	-8.20%	+7.73%
	Sharpe ratio	-0.48	0.25
	Max drawdown	25.38%	9.44%
	Max daily drop	6.14%	4.97%
	Max wkly drop	7.23%	6.01%
5Y	Growth	-17.24%	+21.16%
	CAGR	-3.71%	+3.91%
	Sharpe ratio	-0.21	0.09
	Max drawdown	53.31%	42.22%
	Max daily drop	13.79%	7.69%
	Max wkly drop	14.62%	16.97%
10Y	Growth	+60.08%	+159.69%
	CAGR	+4.82%	+10.02%
	Sharpe ratio	0.17	0.33
	Max drawdown	66.26%	45.08%
	Max daily drop	35.51%	20.96%
	Max wkly drop	50.51%	28.24%

Business comparison

Category	GOOD	STAG
Company	Gladstone Commercial Corporation	STAG Industrial, Inc.
Sector	Real Estate - Diversified Net Lease (Office & Industrial)	Real Estate - Industrial / Single-Tenant Net Lease
Industry	N/A	N/A
Core business	Gladstone Commercial Corporation is an externally managed REIT that acquires, owns, and leases net lease office and industrial real estate in secondary and tertiary markets (smaller U.S. cities outside major metropolitan areas) where competition from institutional buyers is lower. Gladstone's portfolio includes approximately 130+ properties across 27+ states with a mix of office (declining exposure) and industrial (increasing focus) tenants under single-tenant net leases. Gladstone Commercial is managed by Gladstone Management Corporation (affiliated with the Gladstone family of funds, which also includes Gladstone Investment, Gladstone Capital, and Gladstone Land). Gladstone is best known among retail income investors for its monthly dividend payment schedule.	STAG Industrial is a publicly traded REIT focused on the acquisition, ownership, and operation of single-tenant industrial properties across the United States. STAG's portfolio consists of approximately 570+ buildings totaling approximately 110+ million square feet of industrial space diversified across 40+ U.S. states and 100+ tenants. STAG targets industrial buildings priced $5-30M (smaller than the large portfolio acquisitions that large REITs target), allowing STAG to purchase assets at above-market cap rates with less competition from institutional buyers. STAG pays monthly dividends and has a track record of consistent dividend payments since its IPO.
Investor focus	Investors track Gladstone Commercial's portfolio composition (office vs. industrial mix), tenant rent coverage ratios, monthly dividend coverage by FFO, and the portfolio's lease term profile.	Investors track STAG's same-store NOI growth, cash re-leasing spreads, occupancy, core FFO per share, and dividend growth.

GOOD strengths

→Monthly dividend payment schedule appeals to income-focused investors — monthly payment timing matches monthly expense patterns for retirees and income investors
→Secondary market focus can access better cap rates than primary market institutional competition — smaller Gladstone finds better risk-adjusted yields where fewer buyers compete
→Active transition away from office toward industrial improves portfolio quality — Gladstone is actively selling office properties and redeploying into industrial net lease

STAG strengths

→Pure-play industrial focus provides exposure to the highest-performing commercial real estate sector — STAG is 100% industrial, capturing the structural e-commerce tailwind without office or retail drag
→Broad market diversification across 40+ states reduces single-market and tenant concentration risk — no single tenant exceeds approximately 3-4% of annualized base rent
→Monthly dividend has significant retail investor appeal — STAG has paid monthly dividends since its 2011 IPO; the monthly income is attractive to retirees and income investors

Risks to watch — GOOD

→Office exposure remains a significant portfolio risk — post-COVID office market fundamentals are structurally challenged; remaining office properties create earnings and credit risk
→External management creates fee structure considerations — external management fees reduce income available to shareholders; there is tension between fee maximization and shareholder return maximization
→Secondary market industrial properties may be less liquid and lower quality than primary logistics hubs — harder to sell at tight cap rates in a downturn

Risks to watch — STAG

→Smaller secondary-market industrial properties may have lower credit quality tenants than large-format facilities — STAG's focus on $5-30M industrial buildings targets smaller tenants that may have weaker credit profiles
→STAG's secondary market portfolio may have lower rent growth than primary logistics hub markets — suburban and secondary market industrial properties don't always participate equally in supply-constrained primary markets
→Industrial market normalization after 2020-2023 surge may moderate STAG's above-average FFO growth trajectory

Frequently asked questions

Standard dividend frequency: most publicly traded corporations (including REITs) pay dividends quarterly — once per quarter; quarterly dividends align with standard financial reporting cycles. Monthly dividend rationale: some REITs targeting retail and income-oriented investors pay monthly; the rationale is income matching — retirees and income investors have monthly expenses (mortgage payments, utilities, groceries); monthly dividend income is more convenient for budgeting. Who does it: Realty Income Corporation (O) pioneered the 'monthly dividend company' branding; STAG Industrial and Gladstone Commercial followed; LTC Properties, AGNC Investment, and other specialty REITs also pay monthly. Investor considerations: monthly vs. quarterly dividends make no difference to total annual income — a REIT paying $1.20 annually pays $0.30/quarter or $0.10/month; the choice is purely about timing; investors should not assume a monthly dividend REIT is more financially stable than a quarterly payer — the payment frequency is a marketing choice, not a signal of financial strength.

AI Prediction SignalNext 5 trading days

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+2.8%BUY

STAG

+1.1%HOLD

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