When an investor evaluates a Dollar General corporate bond alongside a Dollar General net lease property, they are making the same fundamental credit judgment. The S&P BBB rating is identical. The underlying promise is identical: Dollar General honors its obligations. Yet the NNN investor captures 115 to 245 basis points more yield, plus depreciation, 1031 exchange optionality, and land appreciation that bondholders can never access. Welcome to the bond-to-NNN spread advantage, the cornerstone thesis of investment grade real estate investing.
1. BBB-rated corporate bonds yield roughly 5.3 to 5.7% in 2026.
2. NNN properties leased to those same BBB-rated tenants yield 5.5 to 7.75% cap rates.
3. The spread ranges from negative 50 bps (trophy ground leases) to positive 250 bps (dollar stores, pharmacy).
4. NNN adds depreciation, 1031 exchange treatment, and appreciation that no bond can replicate.
The Bond-to-NNN Spread Explained
A corporate bond and a net lease property issued against the same tenant are claims on the same cash flow. The bondholder receives contractual interest backed by the company’s general credit. The NNN landlord receives contractual rent, also backed by the same company’s general credit, through a direct lease obligation.
Both are senior obligations. Both are governed by long-duration contracts. Both are rated against the same BBB-, A-, AA- ladder. The difference is that the NNN market prices in physical asset risk (location, residual value, tenant concentration) and illiquidity, which produces a yield premium above the bond. That premium is not free money. It is compensation for real frictions. The investor question is whether that compensation is adequate given the tax advantages that come with it.
Master Comparison Table: 83 Investment Grade Bond Issuers with NNN Exposure
Every tenant below is either an investment grade corporate debt issuer or a crossover BB-rated name whose bonds trade alongside their NNN property market. Bond yields reflect 2026 rating-band approximations. NNN cap rates reflect 2026 transaction data from Boulder Group, Northmarq, and NNN Pro. Spread is (cap rate midpoint) minus (bond yield midpoint). Negative spreads indicate premium ground leases where the bond actually pays more than the real estate.
| Tenant (Ticker) | S&P Rating | Bond Yield | NNN Cap Rate | Spread | Deep Dive |
|---|---|---|---|---|---|
| Microsoft (MSFT) | AAA | 4.2 to 4.5% | 5.25 to 5.75% | 75 to 150 bps | – |
| Apple (AAPL) | AA+ | 4.3 to 4.6% | 5.0 to 5.75% | 40 to 145 bps | – |
| Alphabet (Google) (GOOGL) | AA+ | 4.3 to 4.6% | 5.0 to 5.75% | 40 to 145 bps | – |
| Amazon (AMZN) | AA | 4.5 to 4.8% | 5.75 to 7.0% | 95 to 250 bps | – |
| Walmart (WMT) Ground lease |
AA | 4.5 to 4.8% | 4.5 to 5.5% | -30 to 100 bps | – |
| ExxonMobil (XOM) Gas station |
AA‑ | 4.6 to 4.9% | 5.5 to 6.5% | 60 to 190 bps | – |
| Chevron (CVX) Gas station |
AA‑ | 4.6 to 4.9% | 5.5 to 6.5% | 60 to 190 bps | – |
| Costco (COST) Ground lease |
A+ | 4.7 to 5.0% | 4.5 to 5.5% | -50 to 80 bps | – |
| UPS (UPS) | A | 4.8 to 5.1% | 5.5 to 7.0% | 40 to 220 bps | – |
| TD Bank (TD) Branch |
A+ | 4.7 to 5.0% | 4.5 to 5.5% | -50 to 80 bps | – |
| JPMorgan Chase (JPM) Branch [Deep Dive] |
A | 4.8 to 5.1% | 4.5 to 5.5% | -60 to 70 bps | – |
| Bank of America (BAC) Branch |
A | 4.9 to 5.2% | 4.5 to 5.5% | -70 to 60 bps | – |
| Wells Fargo (WFC) Branch |
A | 4.9 to 5.2% | 4.5 to 5.5% | -70 to 60 bps | – |
| U.S. Bancorp (USB) Branch |
A | 4.9 to 5.2% | 4.5 to 5.5% | -70 to 60 bps | – |
| PNC Financial (PNC) Branch |
A | 4.9 to 5.2% | 4.5 to 5.5% | -70 to 60 bps | – |
| Home Depot (HD) Ground lease |
A | 4.9 to 5.2% | 4.5 to 5.5% | -70 to 60 bps | – |
| Target (TGT) Ground lease |
A | 4.9 to 5.2% | 4.5 to 5.5% | -70 to 60 bps | – |
| TJX Companies (TJX) | A | 4.9 to 5.2% | 5.5 to 6.75% | 30 to 185 bps | – |
| Ross Stores (ROST) | A‑ | 5.0 to 5.3% | 5.75 to 6.75% | 45 to 175 bps | – |
| Truist Financial (TFC) Branch |
A‑ | 5.0 to 5.3% | 4.5 to 5.5% | -80 to 50 bps | – |
| 7-Eleven (SVNDY) | A‑ | 5.0 to 5.3% | 5.0 to 6.0% | -30 to 100 bps | – |
| McDonald’s (MCD) Ground lease; trophy |
BBB+ | 5.1 to 5.4% | 4.25 to 4.75% | -115 to -35 bps | – |
| Starbucks (SBUX) | BBB+ | 5.1 to 5.4% | 4.5 to 5.25% | -90 to 15 bps | – |
| Chipotle (CMG) | BBB+ | 5.2 to 5.5% | 5.0 to 6.0% | -50 to 80 bps | – |
| O’Reilly Auto Parts (ORLY) | BBB+ | 5.2 to 5.5% | 5.5 to 6.5% | 0 to 130 bps | View |
| Lowe’s (LOW) Ground lease |
BBB+ | 5.1 to 5.4% | 4.5 to 5.5% | -90 to 40 bps | – |
| Best Buy (BBY) | BBB+ | 5.2 to 5.5% | 5.5 to 6.5% | 0 to 130 bps | View |
| Verizon (VZ) | BBB+ | 5.2 to 5.5% | 5.75 to 7.0% | 25 to 180 bps | – |
| Quest Diagnostics (DGX) | BBB+ | 5.2 to 5.5% | 5.5 to 7.0% | 0 to 180 bps | – |
| Huntington Bancshares (HBAN) Branch |
BBB+ | 5.3 to 5.6% | 4.5 to 5.5% | -110 to 20 bps | – |
| Fifth Third Bancorp (FITB) Branch |
BBB+ | 5.3 to 5.6% | 4.5 to 5.5% | -110 to 20 bps | – |
| Regions Financial (RF) Branch |
BBB+ | 5.3 to 5.6% | 4.5 to 5.5% | -110 to 20 bps | – |
| Citizens Financial (CFG) Branch |
BBB+ | 5.3 to 5.6% | 4.5 to 5.5% | -110 to 20 bps | – |
| KeyCorp (KEY) Branch |
BBB+ | 5.3 to 5.6% | 4.5 to 5.5% | -110 to 20 bps | – |
| Publix (private) (PRIV) Grocery ground lease |
BBB+ | 5.2 to 5.5% | 4.5 to 5.5% | -100 to 30 bps | – |
| Phillips 66 (PSX) Gas station |
BBB+ | 5.2 to 5.5% | 5.5 to 6.5% | 0 to 130 bps | – |
| CVS Health (CVS) Sector pressure |
BBB | 5.4 to 5.7% | 6.5 to 7.5% | 80 to 210 bps | View |
| Walmart (WMT) Trophy ground lease |
AA | 4.7 to 5.0% | 4.5 to 5.25% | -35 to 40 bps | View |
| Costco (COST) Trophy ground lease |
A+ | 4.85 to 5.05% | 4.5 to 5.5% | -45 to 55 bps | View |
| Home Depot (HD) Trophy ground lease |
A | 4.95 to 5.10% | 4.5 to 5.5% | -50 to 50 bps | View |
| McDonalds (MCD) Lowest cap rate in NNN |
BBB+ | 5.0 to 5.2% | 4.4 to 4.75% | -70 to -35 bps | View |
| Starbucks (SBUX) Drive-thru preferred |
BBB+ | 5.0 to 5.2% | 4.5 to 5.25% | -60 to 15 bps | View |
| Lowes (LOW) BBB+ yield pickup |
BBB+ | 5.0 to 5.2% | 5.5 to 7.0% | 40 to 190 bps | View |
| Dollar General (DG) | BBB | 5.3 to 5.6% | 6.75 to 7.75% | 115 to 245 bps | View |
| Dollar Tree (DLTR) | BBB | 5.4 to 5.7% | 6.75 to 7.75% | 105 to 235 bps | View |
| AutoZone (AZO) | BBB | 5.3 to 5.6% | 5.5 to 6.75% | -10 to 145 bps | View |
| Genuine Parts (NAPA) (GPC) | BBB | 5.4 to 5.7% | 5.75 to 7.0% | 5 to 160 bps | View |
| Kroger (KR) | BBB | 5.4 to 5.7% | 5.5 to 6.75% | -20 to 135 bps | View |
| FedEx (FDX) | BBB | 5.4 to 5.7% | 5.5 to 7.0% | -20 to 160 bps | View |
| T-Mobile (TMUS) | BBB | 5.4 to 5.7% | 5.75 to 7.0% | 5 to 160 bps | View |
| Sherwin-Williams (SHW) | BBB | 5.3 to 5.6% | 5.5 to 6.5% | -10 to 120 bps | View |
| AT&T (T) | BBB | 5.4 to 5.7% | 5.75 to 7.0% | 5 to 160 bps | – |
| Tractor Supply (TSCO) | BBB | 5.4 to 5.7% | 5.5 to 6.5% | -20 to 110 bps | View |
| Caseys General Stores (CASY) | BBB | 5.4 to 5.7% | 5.0 to 6.5% | -70 to 110 bps | – |
| Circle K (ACT) (ATD) | BBB | 5.4 to 5.7% | 5.0 to 6.5% | -70 to 110 bps | – |
| Capital One (COF) Branch |
BBB | 5.5 to 5.8% | 4.5 to 5.5% | -130 to 0 bps | – |
| Marriott (MAR) Franchised hotels |
BBB | 5.5 to 5.8% | 7.0 to 8.5% | 120 to 300 bps | – |
| Ulta Beauty (ULTA) | BBB | 5.4 to 5.7% | 5.75 to 6.75% | 5 to 135 bps | – |
| Dick’s Sporting Goods (DKS) | BBB | 5.5 to 5.8% | 6.0 to 7.0% | 20 to 150 bps | – |
| Darden (Olive Garden) (DRI) Parent: Darden |
BBB | 5.4 to 5.7% | 5.5 to 6.75% | -20 to 135 bps | – |
| Darden (LongHorn) (DRI) Parent: Darden |
BBB | 5.4 to 5.7% | 5.5 to 6.75% | -20 to 135 bps | – |
| CarMax (KMX) | BBB | 5.6 to 5.9% | 6.0 to 7.0% | 10 to 140 bps | – |
| Labcorp (LH) | BBB | 5.5 to 5.8% | 5.5 to 7.0% | -30 to 150 bps | – |
| BJ’s Wholesale (BJ) | BBB | 5.4 to 5.7% | 5.5 to 6.5% | -20 to 110 bps | – |
| Valero (VLO) Gas station |
BBB | 5.4 to 5.7% | 5.5 to 6.5% | -20 to 110 bps | – |
| HCA Healthcare (HCA) | BBB‑ | 5.6 to 6.0% | 5.5 to 7.25% | -50 to 165 bps | – |
| Fresenius Medical Care (FMS) Dialysis |
BBB‑ | 5.6 to 6.0% | 5.5 to 7.25% | -50 to 165 bps | – |
| Murphy USA (MUSA) | BBB‑ | 5.7 to 6.1% | 5.0 to 6.5% | -110 to 80 bps | – |
| Dillard’s (DDS) | BBB‑ | 5.7 to 6.1% | 6.0 to 7.5% | -10 to 180 bps | – |
| Hilton (HLT) | BBB‑ | 5.7 to 6.1% | 7.0 to 8.5% | 90 to 280 bps | – |
| Floor & Decor (FND) | BBB‑ | 5.8 to 6.2% | 6.0 to 7.0% | -20 to 120 bps | – |
| AutoNation (AN) | BBB‑ | 5.8 to 6.2% | 6.0 to 7.5% | -20 to 170 bps | – |
| Walgreens (distressed) (WBA) Going private |
BBB‑ | 6.8 to 7.5% | 7.0 to 8.5% | -50 to 170 bps | – |
| Burlington (BURL) | BB+ | 6.4 to 7.0% | 6.0 to 7.0% | -100 to 60 bps | – |
| Nordstrom (JWN) | BB+ | 6.4 to 7.0% | 6.0 to 7.0% | -100 to 60 bps | – |
| Macy’s (M) | BB+ | 6.5 to 7.1% | 6.5 to 8.0% | -60 to 150 bps | – |
| Yum! Brands (Taco Bell) (YUM) Parent: Yum |
BB+ | 6.5 to 7.1% | 5.25 to 6.75% | -185 to 25 bps | – |
| DaVita (DVA) Dialysis |
BB+ | 6.5 to 7.1% | 6.0 to 7.5% | -110 to 100 bps | – |
| Planet Fitness (PLNT) | BB+ | 6.5 to 7.1% | 6.0 to 7.25% | -110 to 75 bps | – |
| Advance Auto Parts (AAP) Recent downgrade |
BB+ | 7.0 to 7.8% | 6.5 to 8.0% | -130 to 100 bps | – |
| RBI (Burger King) (QSR) Parent: RBI |
BB | 6.8 to 7.4% | 5.5 to 7.0% | -190 to 20 bps | – |
| RBI (Popeyes) (QSR) Parent: RBI |
BB | 6.8 to 7.4% | 5.5 to 7.0% | -190 to 20 bps | – |
| RBI (Tim Hortons) (QSR) Parent: RBI |
BB | 6.8 to 7.4% | 5.5 to 7.0% | -190 to 20 bps | – |
| Brinker (Chili’s) (EAT) Parent: Brinker |
BB | 7.0 to 7.6% | 6.5 to 7.5% | -110 to 50 bps | – |
| Albertsons (ACI) | BB | 6.7 to 7.3% | 6.0 to 7.0% | -130 to 30 bps | – |
| Kohl’s (KSS) Recent downgrade |
BB | 7.3 to 8.0% | 6.5 to 8.0% | -150 to 70 bps | – |
| Bloomin’ (Outback) (BLMN) Parent: Bloomin |
BB‑ | 7.2 to 7.9% | 6.0 to 7.5% | -190 to 30 bps | – |
| Goodyear (GT) | BB‑ | 7.0 to 7.7% | 5.75 to 6.75% | -195 to -25 bps | – |
| Petco (WOOF) Distressed |
B | 7.8 to 8.6% | 6.5 to 7.5% | -210 to -30 bps | – |
Data as of 2026. Bond yields derived from rating-band benchmarks with 10Y Treasury at 4.3% and IG OAS at approximately 100 to 125 bps. NNN cap rates from 2026 closed transactions. Quarterly refresh cadence aligned to standard 2026 reporting cadence. Next update: June 20, 2026.
How to Read the Spread
Parity (BBB+ retail and banking): Starbucks, Chipotle, O’Reilly, Lowe’s, branch banks in the BBB+ tier trade roughly at parity to their bonds. The NNN buyer gets effectively the same yield as the bondholder, but keeps the depreciation and 1031 optionality. Tax-efficient income play.
Positive spread 50 to 150 bps (core BBB): AutoZone, Kroger, FedEx, T-Mobile, Tractor Supply at the BBB level. Widest sweet spot for income-focused buyers. Real yield advantage over the bond with comparable credit risk.
Widest positive spread 150 to 250 bps (dollar stores, pharmacy, BBB- medical): Dollar General, Dollar Tree, CVS, Walgreens, HCA Healthcare, Fresenius. Sector pressure drives wider cap rates even though credit remains investment grade. This is the thesis zone: maximum spread capture while staying above the BBB- credit threshold.
Crossover BB and below: Yum! Brands, RBI, Albertsons, Macy’s, Kohl’s. Bondholders demand 6.5 to 8% yields and NNN cap rates sit in similar territory. The NNN investor keeps depreciation and diversification but must underwrite real tenant credit risk.
The Four Tax Advantages Bondholders Cannot Access
A corporate bond pays taxable interest income. Period. Every dollar of coupon is ordinary income in the year received. The NNN property generates identical contractual cash flow, but the tax treatment is structurally different in four ways.
- Depreciation. The building on an NNN property can be depreciated on a 39-year straight-line schedule, or accelerated via cost segregation to shelter 20 to 35% of the purchase price in the first five years. For a $2M NNN property with $1.5M allocated to the building, that is roughly $38K of annual paper loss that offsets rental income. A bond investor has zero equivalent. See our 1031 exchange guide for how this compounds.
- 1031 Exchange treatment. An NNN owner can sell and roll 100% of gains tax-deferred into a replacement NNN property indefinitely. Bondholders pay capital gains on every trade. Over a 20-year hold, this single tax advantage can add 200 to 400 bps to the NNN investor’s after-tax IRR.
- Land appreciation. The dirt under a McDonald’s in suburban Dallas or a CVS in Phoenix appreciates with the local real estate market. Bonds are contracts with no residual; they mature at par. Over 20 years, appreciation can add another 100 to 300 bps to total return.
- Step-up in basis at death. Heirs inherit NNN property at fair market value, wiping out all deferred capital gains. Bonds have no equivalent forgiveness mechanism. For estate-focused investors over age 55, this is often the decisive factor.
Sector Rollup
The spread story varies sharply by sector. The table below groups the tenants above into eight macro categories for quick reference.
| Sector | Typical Bond Yield | Typical NNN Cap Rate | Typical Spread | Example Tenants |
|---|---|---|---|---|
| Big Box Ground Lease | 4.5 to 5.2% | 4.5 to 5.5% | -70 to +100 bps | Walmart, Target, Home Depot, Costco, Lowe’s |
| Top-Tier QSR | 5.1 to 5.5% | 4.25 to 5.5% | -115 to +40 bps | McDonald’s, Starbucks, Chipotle |
| Auto Parts & Service | 5.2 to 5.8% | 5.5 to 7.0% | -10 to +180 bps | AutoZone, O’Reilly, NAPA, Advance Auto |
| Convenience & Gas | 4.7 to 5.8% | 5.0 to 6.5% | -80 to +170 bps | 7-Eleven, Casey’s, Circle K, Murphy USA |
| Banking Branches | 4.8 to 5.6% | 4.5 to 5.5% | -110 to +50 bps | JPM, BAC, WFC, PNC, USB |
| Dollar Stores | 5.3 to 5.7% | 6.75 to 7.75% | +105 to +245 bps | Dollar General, Dollar Tree |
| Pharmacy | 5.4 to 7.5% | 6.5 to 8.5% | +80 to +210 bps | CVS, Walgreens |
| Medical & Healthcare | 5.5 to 6.1% | 5.5 to 7.25% | -30 to +165 bps | HCA, Fresenius, Labcorp, Quest, DaVita |
| Industrial & Logistics | 4.5 to 5.7% | 5.5 to 7.0% | +40 to +250 bps | Amazon, UPS, FedEx |
Why This Matters for 1031 Exchange Buyers
1031 exchange buyers face a unique constraint: they have 45 days to identify replacement property and 180 days to close. They cannot wait for bond yields to move or cap rates to compress. They need to match a specific dollar amount into a specific asset class within a specific window. The bond-to-NNN spread table above is the single most useful reference document for a 1031 buyer deciding which tenant credit to underwrite. It answers in one screen: “How much yield premium am I earning for accepting real estate illiquidity over the same company’s public debt?”
For exchanges in the $2M to $10M range, the BBB and BBB+ rows on the table are the sweet spot. For exchanges above $20M, the top-tier AA and A ground-lease rows become economically viable. For exchanges below $2M, the dollar store and crossover BB rows offer the widest spread at manageable credit risk. We cover the mechanics in the investment grade 1031 exchange guide.
For Property Owners: What the Spread Means for Your Refinance
Common scenarios: Maturing CMBS loan, variable rate conversion approaching, cash-out refinance to fund next 1031, buydown to lock pre-Fed-cut rates. Request a refi quote keyed to your tenant credit profile. We maintain active relationships with 40+ lenders that underwrite investment grade tenant debt.
Sector Deep Dives
Sector pages aggregate every investment grade issuer in a vertical with current 2026 yields, credit ratings, and the explicit NNN tenant crossover. When the same balance sheet stands behind both a corporate bond and a triple-net lease, the bond-to-NNN spread becomes a direct apples to apples decision. Nine sector deep dives are planned. Four are live.
| Sector | Status | NNN Tenants in IG 180 |
|---|---|---|
| Healthcare | Live | CVS, Walgreens, DaVita, Fresenius, HCA, LabCorp, Quest, Aspen Dental, Heartland Dental, Pacific Dental, plus 4 more |
| Consumer Discretionary | Live | Home Depot, Lowes, McDonalds, Starbucks, AutoZone, OReilly, Best Buy, Tractor Supply, Genuine Parts, plus 10 more |
| Consumer Staples | Live | Walmart, Costco, Target, Dollar General, Dollar Tree, Kroger, 7-Eleven, Caseys, Whole Foods, ALDI, plus more |
| Utilities | Live | Limited NNN crossover, AI hyperscaler power demand thesis |
| Telecom | Planned | T-Mobile, plus tower REIT crossover |
| Energy | Planned | Limited direct crossover, midstream and refiner thesis |
| Industrial | Planned | FedEx, UPS, plus rail and aerospace |
| Banks | Planned | Chase, BofA, Wells Fargo, Capital One bank branch NNN |
| REIT Bonds | Planned | Realty Income, NNN REIT, Agree, Spirit, Welltower, Ventas, Healthpeak |
Sector pages roll out across 2026. Each follows the same template: sector thesis, current credit metrics, full IG issuer roster by subsector, NNN crossover summary, sector specific risk factors, recent rating actions, and FAQ.
Featured Deep-Dive Analyses
Nineteen tenants on the master table above have dedicated bond-to-NNN deep dives that walk through specific CUSIPs, recent lease comps, and the precise spread calculation. Each page is refreshed throughout the year.
- JPMorgan Chase Bonds vs. NNN: Bank Branch Spread Analysis
- Walmart Bonds vs. NNN: AA Trophy Ground Lease Spread
- Home Depot Bonds vs. NNN: A Big-Box Industrial Anchor
- Costco Bonds vs. NNN: A+ Membership Warehouse Premium
- Lowe’s Bonds vs. NNN: BBB+ Home Improvement Spread
- McDonald’s Bonds vs. NNN: BBB+ QSR Ground Lease Standard
- Starbucks Bonds vs. NNN: BBB+ Coffee Pad Site Premium
- Dollar General Bonds vs. NNN: The Widest Investment Grade Spread
- Dollar Tree Bonds vs. NNN: 105 to 235 bps on BBB Credit
- CVS Health Bonds vs. NNN: Pharmacy Sector Stress Creates Yield
- AutoZone Bonds vs. NNN: Internet-Resistant BBB Credit
- O’Reilly Auto Parts Bonds vs. NNN: BBB+ Premium Over Bonds
- Genuine Parts (NAPA) Bonds vs. NNN: BBB with Dividend Aristocrat Status
- FedEx Bonds vs. NNN: Industrial NNN Premium Over BBB Debt
- Kroger Bonds vs. NNN: Grocery Ground Lease Economics
- Tractor Supply Bonds vs. NNN: Rural Retail Thesis
- Best Buy Bonds vs. NNN: BBB+ Resilience Play
- Sherwin-Williams Bonds vs. NNN: BBB Specialty Retail
- T-Mobile Bonds vs. NNN: Telecom Retail Spread Thesis
Frequently Asked Questions
Why do NNN properties yield more than the same company’s bonds?
Three reasons: real estate illiquidity (you cannot sell an NNN property in 90 seconds like a bond), physical asset risk (location, condition, residual value), and a smaller, less efficient capital market. The NNN market has fewer buyers per deal than the public bond market, so sellers must offer a yield premium to clear transactions. That premium is the spread.
Is the spread guaranteed to hold over time?
No. The spread compressed meaningfully from 2019 to 2022 as interest rates fell, then widened sharply from 2022 to 2024 as the Fed raised rates. Current 2026 spreads are near 10-year averages. A Fed cutting cycle would compress NNN cap rates faster than bond yields, narrowing the spread. A Fed tightening cycle would do the opposite.
If I already own corporate bonds, should I rotate into NNN?
Depends on your tax situation, time horizon, and liquidity needs. For investors over age 55 with estate-planning goals, NNN generally wins on after-tax basis because of depreciation, 1031, and step-up in basis at death. For investors under 35 without estate concerns and who value liquidity, bonds often win. We do not provide tax advice; consult a CPA before executing any rotation.
What is the minimum investment to access this spread?
Entry-level NNN transactions start around $1M to $2M for a Dollar General, auto parts store, or quick-service restaurant. BBB-rated bank branches typically start at $1.5M. Trophy ground leases (McDonald’s, Walmart) begin around $4M to $8M. Bond investors can access the same credits for as little as $1,000 per bond in most retail brokerage accounts. The NNN minimum ticket is structurally higher.
Which tenants on the table have the strongest 2026 credit trajectory?
Credit improvement candidates include 7-Eleven (Seven & i), Tractor Supply (organic growth), Costco (exceptional cash flow), and TJX Companies (off-price tailwinds). Credit pressure is most acute at Walgreens (going private), Advance Auto Parts (recent junk downgrade), and Kohl’s (multi-notch downgrade in 2025). We recommend verifying any rating with S&P Global or Moody’s directly before transacting.
Does this table include ground leases, fee simple, and absolute NNN equally?
No. The cap rate ranges in the master table are weighted toward absolute NNN (the most common structure). Ground leases typically trade 50 to 150 bps lower than the range shown. Standard NNN (where the tenant pays taxes, insurance, and maintenance but not roof and structure) trades in line with the range. Double-net (NN) trades 25 to 75 bps wider. When reading any specific deal, always confirm the lease structure.
Can I see bond CUSIPs for each tenant?
Each of the 12 deep-dive pages linked above includes specific CUSIPs, coupon rates, maturities, and current yield-to-maturity for representative issues. Bond reference data sourced from FINRA TRACE. We do not publish CUSIPs for the remaining 70+ tenants on this page; those are available on request through our contact form.
Methodology and Data Sources
Bond yields: 2026 rating-band approximations anchored to 10-Year U.S. Treasury at 4.3% and investment grade OAS of 100 to 125 bps (Bloomberg Barclays U.S. Corporate IG Index). Actual CUSIP-level yields vary by maturity, seniority, and callability. NNN cap rates: 2026 closed transaction data aggregated from Boulder Group Net Lease Research, Northmarq National Net Lease Group, SRS Real Estate Partners National Net Lease Group, and public REIT SEC filings (Realty Income, Agree Realty, NNN REIT, W.P. Carey). Credit ratings: S&P Global Ratings as of April 2026, verified against Moody’s Investors Service and Fitch Ratings where available. Ratings are subject to change; always confirm before transacting. Refresh cadence: Throughout 2026 at standard reporting intervals. This page is maintained by InvestmentGrade.com, a licensed commercial real estate brokerage specializing in net lease and investment grade real estate.
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced are approximate, fluctuate continuously, and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker‑dealer, registered investment advisor, or tax professional before making any investment decision. For official municipal bond disclosures and trade data, visit EMMA at emma.msrb.org. For SEC investor education, visit investor.gov.
