Dick’s Sporting Goods Credit Rating & NNN Cap Rate

Dick’s Sporting Goods Business Overview & NNN Investment Profile

DICK’S Sporting Goods is the largest US sporting goods retailer by revenue, operating approximately 850 stores across all 50 states under the Dick’s Sporting Goods, Golf Galaxy, and Public Lands banners. Founded in 1948 in Binghamton, New York by Richard Stack, the company has grown into a $13+ billion revenue enterprise with a dominant national market position in athletic and outdoor equipment, apparel, and footwear. Dick’s has successfully navigated the physical retail headwinds that claimed Sports Authority and Sport Chalet by investing heavily in its omnichannel capabilities, exclusive brand partnerships, and an experiential in-store model with dedicated hitting bays, putting greens, and climbing walls in its larger House of Sport format locations.

Dick’s Sporting Goods Credit Rating Analysis

Dick’s Sporting Goods achieved investment grade status based on its outstanding financial performance during and after the COVID period, when demand for athletic equipment, outdoor recreation, and fitness products surged. The company used the resulting cash generation to significantly reduce debt, return capital to shareholders, and invest in next-generation store formats. S&P’s BBB and Moody’s Baa2 ratings with stable outlooks reflect a financially disciplined, market-leading retailer that has proven its ability to generate consistent free cash flow through multiple economic cycles.

The company’s business model advantages are meaningful from a credit perspective: exclusive brand partnerships with Nike, Adidas, and Callaway reduce vulnerability to pure commodity price competition; the equipment and apparel mix includes both discretionary and need-based purchases; and the sporting goods category has proven more resilient than general merchandise or home goods in the post-COVID normalization. Investment grade BBB/Baa2 ratings place Dick’s in the solid lower-medium investment grade tier alongside Dollar General, FedEx, and AT&T.

Dick’s Sporting Goods NNN Lease Structure

Dick’s NNN leases typically carry 10 to 20 year initial terms with rent escalations of 1.5% to 2.0% annually. The 40,000 to 50,000 square foot format is mid-sized by big box standards — larger than junior box retailers but smaller than warehouse clubs or hypermarkets. The format is well-suited to power center anchoring alongside grocery, home improvement, and off-price tenants. The specialized sporting goods buildout — including batting cages, putting greens, and climbing walls in House of Sport formats — creates meaningful tenant investment that supports long-term lease commitment.

Dick’s Sporting Goods NNN Cap Rate & Pricing Trends

Dick’s Sporting Goods NNN properties trade at cap rates between 6.0% and 7.0% as of Q1 2026. The BBB/Baa2 rating supports solid investment grade pricing, though the large-format nature and specialized buildout place these in the institutional and family office buyer tier rather than the individual investor market. Properties with long remaining lease terms (15+ years) and strong power center co-tenancy trade at the tighter end of the range. Typical acquisition prices range from $6,000,000 to $15,000,000.

Dick’s Sporting Goods NNN Investment: Pros & Cons

Comparable NNN Tenants