| Metric | Details |
|---|---|
| Entity / Legal Name | Designer Brands Inc. (DBI) |
| Brand Name | DSW Designer Shoe Warehouse |
| S&P / Moody’s Rating | B+ / B2 |
| Investment Grade Status | Non-Investment Grade / High Yield |
| Sector | Footwear & Accessories Retail |
| US DSW Store Count | ~500 |
| Cap Rate Range | 7.5–9.0% |
| Typical Lease Term | 10–15 years (NNN or Modified Gross) |
| Guarantee Type | Corporate (Designer Brands Inc.) |
| Stock Ticker | DBI (NYSE) |
| Annual Revenue | ~$3.2B (FY2024) |
| Typical Building Size | 15,000–20,000 SF |
| Typical Price Range | $3,000,000–$7,000,000 |
DSW / Designer Brands Business Overview & NNN Investment Profile
DSW Designer Shoe Warehouse is the flagship brand of Designer Brands Inc. (NYSE: DBI), a Columbus, Ohio-based footwear and accessories specialty retailer operating approximately 500 DSW stores across the United States. Designer Brands also operates The Shoe Company and Shoe Warehouse banners in Canada and owns the Vince Camuto, Lucky Brand Footwear, and Jessica Simpson footwear licenses. DSW’s 15,000 to 20,000 square foot off-price footwear format — typically located in power centers alongside off-price apparel and grocery tenants — positions the brand in the accessible fashion segment of the footwear market.
DSW Credit Rating Analysis
Designer Brands’ B+/B2 ratings reflect the company’s challenged financial position following a difficult post-COVID normalization. After strong pandemic-era demand for casual and comfortable footwear, DSW has faced pressure from declining traffic in its power center format, competition from online footwear platforms including Zappos (Amazon) and shoe-focused DTC brands, and margin pressure from promotional pricing. The company has executed cost reduction initiatives and brand portfolio rationalization but has not yet achieved the consistent free cash flow generation needed to support an investment grade credit profile.
The B+ level places DSW in the same credit tier as a number of challenged specialty retailers. The company’s lease obligations are guaranteed by Designer Brands Inc., the publicly traded parent — meaning NNN lease credit quality is tied directly to the parent’s B+/B2 ratings rather than store-level performance.
DSW NNN Lease Structure
DSW leases are typically structured as NNN or modified gross in power center strip configurations, running 10 to 15 years with renewal options. The 15,000 to 20,000 square foot format is mid-sized by power center standards — larger than specialty apparel but smaller than junior box anchors like Dick’s or Kohl’s. The accessible size makes these viable for a range of replacement tenants if needed, including fitness concepts, beauty retailers, home goods discounters, and healthcare walk-in clinics.
DSW NNN Cap Rate & Pricing Trends
DSW NNN properties trade at cap rates between 7.5% and 9.0% as of Q1 2026, reflecting the B+/B2 non-investment grade credit and the specialty footwear sector’s ongoing competitive pressures. Power center locations with strong co-tenancy, high traffic, and long remaining lease terms price at the tighter end. Properties with shorter remaining terms or weaker trade areas command wider spreads to compensate investors for the elevated rollover risk.
DSW NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| Power center format with strong co-tenancy support | B+/B2 — non-investment grade, challenged financial profile |
| 15–20K SF format has multiple re-tenanting options | Footwear retail faces structural headwinds from online competitors |
| Accessible price point ($3M–$7M) for individual investors | Post-COVID traffic normalization has pressured same-store results |
| 7.5–9.0% cap rates offer significant yield premium | Some leases modified gross — confirm expense structure |
Comparable NNN Tenants
| Comparable Tenant | Rating | Cap Rate Range |
|---|---|---|
| Ross Dress For Less | BBB+ / A2 | 5.5–6.5% |
| Burlington | BB+ / Ba2 | 6.5–7.5% |
| Michaels | B / B1 | 7.5–9.0% |
What is DSW’s credit rating?
DSW is operated by Designer Brands Inc. (NYSE: DBI), which carries B+ from S&P and B2 from Moody’s — non-investment grade / high yield ratings placing the company in speculative territory. NNN lease guarantees run through Designer Brands Inc. as the publicly traded parent entity.
What cap rates are DSW NNN properties trading at?
DSW NNN properties trade at 7.5% to 9.0% as of Q1 2026, reflecting the B+/B2 non-investment grade rating and the yield premium investors require for elevated credit uncertainty in the specialty footwear segment.
The Only DSW NNN Advisor Whose Fee Comes From the Deal, Not From You
In NNN buyer representation, the listing broker pays the cooperating commission. That means you get a dedicated advisor handling sourcing, underwriting, financing, and closing — and on the majority of transactions, there is no separate fee to you as the buyer.
Find It — DSW power center NNN properties sourced with co-tenancy, traffic, and lease term analysis before you commit due diligence costs.
Fund It — Non-IG specialty retail requires the right lender. We match you with lenders who price this credit tier and format competitively.
Exit It — Selling a DSW property? We know the yield-focused NNN buyer pool for this credit tier and format.
Not committed to DSW? Tell us your criteria — the tenant is a variable. Your criteria is the constant.
Get Your Free DSW NNN Consultation →
In a 1031 exchange with a deadline? Tell us your timeline — we move faster.
Related NNN Tenants
- Barnes & Noble
- Bed Bath & Beyond
- Best Buy
- Big Lots
- BJ’s Wholesale Club
- Burlington
- Costco
- Dick’s Sporting Goods
- Dillard’s
- Dunham’s Sports
- Five Below
- Floor & Decor
- Harbor Freight
- Home Depot
- JCPenney
- Joann Fabric & Crafts
- Kirkland’s
- Kohl’s
- Lifetime Fitness
- Lowe’s
- Macy’s
- Michaels
- Nordstrom
- Office Depot / OfficeMax
- Old Navy / Gap
- Party City
- Petco
- PetSmart
- Planet Fitness
- Ross Dress For Less
- Staples
- The Container Store
- TJ Maxx / HomeGoods / Marshalls
- Tractor Supply Co.
- Ulta Beauty
- Ollie’s Bargain Outlet
- Target
- Walmart
- Sam’s Club
Own a DSW Property? Capital Markets Strategies Beyond Selling
Maturing debt and considering refinancing? Our capital markets team maintains 150+ lender relationships underwriting NNN properties across investment-grade and non-investment-grade credit tiers. We structure rate-and-term refinancing, cash-out refis, and bridge-to-perm takeouts.
Evaluating a 1031 exchange or disposition? We represent both sides of DSW NNN transactions — whether you are looking to exit at peak value, exchange into a higher-quality credit tenant, or reposition within the same sector.
Need a current valuation? We maintain live comps on DSW NNN transactions and can produce a Broker Opinion of Value within 48 hours reflecting today’s cap rate market.
Own multiple DSW properties? Considering an off-market sale?
Investment Grade represents owners on confidential disposition of DSW portfolios and individual properties through off-market direct-to-principal distribution to specialty REITs, private equity funds, and family offices. DSW buyer demand runs deep, and portfolio sales consistently produce stronger pricing than sequential individual sales because the institutional buyer pool is structured around portfolio acquisition.
For multi-property owners considering a portfolio disposition, see Selling Investment Grade NNN Off-Market: Tenant-by-Tenant Buyer Demand. For the full off-market framework covering individual property dispositions, sale-leasebacks, and 1031 coordination, see Off-Market CRE Sales: The Complete 2026 Guide.
The pre-listing conversation is at no cost and fully confidential. Email team@investmentgrade.com or see contact Investment Grade.
