Sumit Roy
President and Chief Executive Officer at Realty Income
Nate, thank you for your questions. So I hope to attempt to answer all of them, but I might miss a few. In terms of our volume, look, this is a continuation of a theme that we started the year with. And as you might recall, Nate, January, we had come out with a very robust pipeline. We've already sourced, year-to-date, more than $40 billion. And clearly, at the run rate that we've been able to achieve over the last three quarters and year-to-date, you can have a sense for the robustness of the pipeline. And I think the biggest surprise for us has been our -- the volume that we've been able to generate in the U.K., some of which sort of translated to what we were able to accomplish in the second quarter. But even if you look year-to-date, it's representing about 40% of acquisitions. And the quality of the product that we're continuing to see, the relationships that we've been able to establish and grow in the U.K. during a very short period over the last two years is a testament to why we feel very comfortable with having increased our acquisition guidance by another $1.25 billion given that we are clipping away at $1 billion. So in terms of the pipeline, we are very happy with what we are seeing. We are very comfortable with the product that we are seeing.
And I think this is -- this trend is going to continue. In terms of the makeup, you might have seen that depending on the quarter, anywhere between 25% to 30% of what we are acquiring is industrial. In the second quarter, 15% of overall acquisition was industrial, largely driven by about 35% industrial in the U.S. And we, again, on the relationship front, have been able to make a fair amount of progress, are seeing acquisition opportunities, sometimes before it even hits the market and being able to try to get some of these transactions over the finish line with the relationships that we have developed. And I think you should expect to see this 15% to 25% of our volume coming from the industrial side of the equation in terms of asset type continue over the next few quarters. In terms of cap rate, look, it's a very aggressive market. I think in previous calls, I've mentioned that cap rates have continued to compress, tighten, whatever the right word is. And it's -- I think it's a testament to certainly the type of products that we are pursuing, but more so to the fact that net lease is a very unique way of investing in real estate that is very specific. And as such, for the type of products that we pursue, we have continued to see cap rates compress. And by the way, this is across the spectrum on the credit curve.
It's not just on the investment-grade side. In fact, I'd argue on the investment-grade side, the compression has been more muted on a relative basis versus what we have seen on the high-yield side of the equation. So -- and that trend is continuing, and we saw that in the second quarter as well. I believe on the industrial front, it has continued to tighten, but it has -- the speed with which it's tightening has certainly slowed down. And we are seeing products on the industrial side for well-located assets in the high 3% cap rate, low 4% ZIP code to, on the rare occasion, high 4%, low 5% ZIP code depending on location. On the retail side, it's a similar story. For high-quality assets with long lease terms, good growth, you're seeing in the low 4% to low 5% ZIP code. And then if you're willing to compromise on lease term or growth rates or what have you, perhaps credit, you can see transactions transacting in the mid-5% to low 7% ZIP code. But the stuff that one buys in the high 6s, low 7%, that has credit profiles, lease terms, etc., that obviously has a much higher risk profile associated to it. So I don't know if I got all your questions in, Nate, but please let me know if I missed something.
