Q1 2026 Market Overview
Single‑tenant net lease cap rates declined modestly in the first quarter of 2026, with the overall average ticking down one basis point to 6.80%. The compression came despite the 10‑Year Treasury climbing nearly 30 basis points during the quarter, reaching as high as 4.48% by late March before settling near 4.38% at quarter-end. The Federal Reserve held the federal funds rate steady at 3.50% to 3.75% at both its January and March meetings, maintaining a pause after three consecutive cuts in the second half of 2025.
Perhaps the most significant signal was on the supply side: net lease property inventory fell 9.8% quarter‑over‑quarter, dropping from 5,710 to 5,151 listings. That contraction was driven by elevated transaction volume in Q4 2025, fueled in part by the reinstatement of 100% bonus depreciation for qualifying assets. The transactional momentum carried into Q1 2026, and the supply reduction was consistent across all three sectors: retail, office, and industrial.
Bid‑ask spreads continued to narrow, which is the clearest indicator that buyers and sellers are finding pricing consensus. Retail spreads compressed two basis points to 23 bps, and industrial spreads tightened four basis points to 25 bps. Office spreads held flat at 50 bps, reflecting the continued discount investors demand for that sector.
National Asking Cap Rates by Sector
| Sector | Q4 2025 | Q1 2026 | Change (bps) |
|---|---|---|---|
| Retail | 6.55% | 6.55% | 0 |
| Office | 8.00% | 7.90% | ‑10 |
| Industrial | 7.20% | 7.15% | ‑5 |
| Overall | 6.81% | 6.80% | ‑1 |
Net Lease Supply & Bid‑Ask Spreads
| Metric | Q4 2025 | Q1 2026 | Change |
|---|---|---|---|
| Retail Properties on Market | 4,312 | 3,832 | ‑11.1% |
| Office Properties on Market | 685 | 644 | ‑6.0% |
| Industrial Properties on Market | 713 | 675 | ‑5.3% |
| Total Properties on Market | 5,710 | 5,151 | ‑9.8% |
| Retail Bid‑Ask Spread | 25 bps | 23 bps | ‑2 |
| Office Bid‑Ask Spread | 50 bps | 50 bps | 0 |
| Industrial Bid‑Ask Spread | 29 bps | 25 bps | ‑4 |
NNN Cap Rate Spread Over 10‑Year Treasury
The relationship between NNN cap rates and the risk‑free rate is what makes net lease investing compelling relative to bonds. With the 10‑Year Treasury averaging approximately 4.38% at the end of Q1 2026, net lease investors are earning meaningful spread premiums above Treasuries, with even the tightest‑priced assets like McDonald’s ground leases providing near‑parity yield before accounting for depreciation, appreciation, and 1031 exchange advantages.
| NNN Sector / Tenant | Q1 2026 Cap Rate | Spread Over 10‑Yr Treasury (4.38%) |
|---|---|---|
| McDonald’s (Ground Lease) | 4.40% | +2 bps |
| Chick‑fil‑A (Ground Lease) | 4.50% | +12 bps |
| Raising Cane’s | 5.00% | +62 bps |
| Chipotle | 5.45% | +107 bps |
| Taco Bell | 5.50% | +112 bps |
| QSR Corporate (Avg) | 5.82% | +144 bps |
| Auto Service | 6.15% | +177 bps |
| Starbucks | 6.45% | +207 bps |
| Retail (Overall) | 6.55% | +217 bps |
| Casual Dining (Corporate) | 6.55% | +217 bps |
| Auto Parts | 6.65% | +227 bps |
| QSR Franchisee (Avg) | 6.80% | +242 bps |
| CVS | 6.80% | +242 bps |
| Dollar General | 7.15% | +277 bps |
| Dollar Store Sector | 7.47% | +309 bps |
| Drug Store Sector | 7.85% | +347 bps |
| Walgreens | 8.10% | +372 bps |
The thin spread on trophy assets like McDonald’s and Chick‑fil‑A does not tell the full story. NNN investors in those names earn their real return through tax advantages unavailable to Treasury holders: cost segregation and bonus depreciation (restored to 100% permanently in 2025), the ability to defer capital gains indefinitely via 1031 exchanges, and long‑term real estate appreciation. When those factors are included, the total after‑tax return on a McDonald’s ground lease materially exceeds a Treasury bond of equivalent duration.
Sector Deep Dive: Quick Service Restaurants
The QSR sector continues to command the tightest cap rates and deepest buyer pools in net lease. Corporate‑guaranteed QSR cap rates compressed three basis points to 5.82%, led by McDonald’s ground leases tightening 10 basis points to 4.40%, the lowest cap rate in the entire net lease universe. Meanwhile, franchisee‑guaranteed QSR moved in the opposite direction, widening five basis points to 6.80%, highlighting the growing investor focus on guarantee quality.
Corporate QSR Cap Rates
| Tenant | Credit Rating | Q4 2025 | Q1 2026 | Change (bps) |
|---|---|---|---|---|
| McDonald’s (Ground Lease) | S&P: A | Moody’s: Baa1 | 4.50% | 4.40% | ‑10 |
| Chick‑fil‑A (Ground Lease) | Private / NR | 4.50% | 4.50% | 0 |
| Raising Cane’s | Private / NR | 5.00% | 5.00% | 0 |
| Chipotle | S&P: BBB+ | Moody’s: A3 | 5.50% | 5.45% | ‑5 |
| Panera Bread | Private / NR | 5.80% | 5.85% | +5 |
| Starbucks | S&P: BBB+ | Moody’s: A3 | 6.50% | 6.45% | ‑5 |
| All Corporate QSR | 5.85% | 5.82% | ‑3 |
Franchisee QSR Cap Rates
| Tenant | Parent / Guarantor | Q4 2025 | Q1 2026 | Change (bps) |
|---|---|---|---|---|
| Taco Bell | Yum! Brands (BBB) | 5.50% | 5.50% | 0 |
| Wendy’s | Wendy’s Intl (BB+) | 5.68% | 5.73% | +5 |
| Dunkin’ | Inspire Brands (Private) | 6.07% | 6.10% | +3 |
| Burger King | RBI (BB+) | 6.35% | 6.40% | +5 |
| KFC | Yum! Brands (BBB) | 6.40% | 6.50% | +10 |
| All Franchisee QSR | 6.75% | 6.80% | +5 |
QSR Cap Rates by Lease Term Remaining
| Lease Term | Corporate QSR | Franchisee QSR | Spread (Corp vs. Franchisee) |
|---|---|---|---|
| 20+ Years | 5.00% | 5.90% | 90 bps |
| 15 to 19 Years | 5.50% | 6.30% | 80 bps |
| 10 to 14 Years | 6.03% | 6.77% | 74 bps |
| Under 10 Years | 6.83% | 7.55% | 72 bps |
The corporate‑vs.‑franchisee spread reveals a consistent premium of 72 to 90 basis points across all lease term buckets. That spread has held remarkably stable, suggesting the market has developed a reliable pricing mechanism for guarantee quality. For investors analyzing a specific QSR deal, the guarantee type is worth roughly three‑quarters of a point in cap rate, all else being equal.
Sector Deep Dive: Dollar Stores
Dollar store cap rates widened across the board in Q1 2026, moving in the opposite direction of the overall market. Family Dollar led the expansion at +15 basis points to 8.65%, reflecting the ongoing structural headwinds facing the brand after Dollar Tree eliminated the parent company guarantee in July 2025. Dollar General widened five basis points to 7.15%, and Dollar Tree expanded seven basis points to 7.57%.
| Tenant | Credit Rating | Q4 2025 | Q1 2026 | Change (bps) |
|---|---|---|---|---|
| Dollar General | S&P: BBB | Moody’s: Baa2 | 7.10% | 7.15% | +5 |
| Dollar Tree | S&P: BBB‑ | Moody’s: Baa3 | 7.50% | 7.57% | +7 |
| Family Dollar | No Guarantee (as of July 2025) | 8.50% | 8.65% | +15 |
| Dollar Store Sector | 7.40% | 7.47% | +7 |
Dollar Store Cap Rates by Lease Term
| Lease Term | Dollar General | Family Dollar | Dollar Tree |
|---|---|---|---|
| 12 to 15 Years | 6.85% | N/A | N/A |
| 9 to 11 Years | 7.25% | 8.15% | 7.30% |
| 6 to 8 Years | 8.15% | 8.50% | 7.85% |
| 3 to 5 Years | 8.50% | 9.10% | 8.00% |
| Under 3 Years | 9.00% | 9.50% | 8.80% |
The lease term data tells a clear story about credit risk pricing. A Dollar General with 12 to 15 years remaining trades at 6.85%, which is tighter than the sector average for casual dining. A Family Dollar with under three years trades at 9.50%, approaching distressed territory. The spread between long‑term and short‑term Dollar General properties is 215 basis points, essentially pricing the re‑tenanting risk into the short end of the curve.
Sector Deep Dive: Drug Stores
Pharmacy continues to be the widest‑trading sector in net lease, with a 130 basis point spread between CVS (6.80%) and Walgreens (8.10%). Both tenants widened in Q1, with CVS expanding 13 basis points and Walgreens expanding 10 basis points. The sector average moved to 7.85%, up 10 basis points from Q4 2025.
| Tenant | Credit Rating | Q4 2025 | Q1 2026 | Change (bps) |
|---|---|---|---|---|
| CVS Health | S&P: BBB | Moody’s: Baa3 | Fitch: BBB | 6.67% | 6.80% | +13 |
| Walgreens | Private (went private 2025) | 8.00% | 8.10% | +10 |
| Drug Store Sector | 7.75% | 7.85% | +10 |
Drug Store Cap Rates by Lease Term
| Lease Term | CVS | Walgreens | CVS‑WBA Spread |
|---|---|---|---|
| 15 to 19 Years | 6.35% | 6.75% | 40 bps |
| 10 to 14 Years | 7.00% | 7.45% | 45 bps |
| 6 to 9 Years | 7.65% | 8.65% | 100 bps |
| Under 5 Years | 8.45% | 9.25% | 80 bps |
The CVS‑Walgreens spread widens dramatically in the shorter lease terms. At 15 to 19 years remaining, investors price the two names just 40 basis points apart, suggesting confidence that both brands will survive over that horizon. At 6 to 9 years, the spread blows out to 100 basis points, reflecting the market’s assessment that Walgreens faces meaningfully higher re‑tenanting and credit risk as its leases approach expiration. Walgreens going private in 2025 removed the transparency of public financial reporting, adding another layer of uncertainty.
Sector Deep Dive: Auto
| Subsector | Q4 2025 | Q1 2026 | Change (bps) |
|---|---|---|---|
| Auto Service | 6.19% | 6.15% | ‑4 |
| Auto Parts | 6.60% | 6.65% | +5 |
| Collision | 6.65% | 6.65% | 0 |
| Auto Sector (Overall) | 6.50% | 6.45% | ‑5 |
Auto Sector Cap Rates by Lease Term
| Lease Term | Auto Parts | Auto Service | Collision |
|---|---|---|---|
| 16 to 20 Years | 5.65% | 5.80% | 6.55% |
| 11 to 15 Years | 6.10% | 6.05% | 6.82% |
| 6 to 10 Years | 7.15% | 7.00% | 7.00% |
| 5 Years & Under | 8.10% | 7.25% | 8.00% |
The auto sector remains one of the most “internet‑resistant” categories in net lease. AutoZone (S&P: BBB), O’Reilly (S&P: BBB+), and Advance Auto Parts trade on the strength of their thesis that DIY and DIFM automotive maintenance requires in‑person retail. Auto service brands like Take 5 Oil Change, Valvoline, and Jiffy Lube benefit from the same dynamic, with recurring service needs that cannot be digitized.
Sector Deep Dive: Casual Dining
| Tenant | Q4 2025 | Q1 2026 | Change (bps) |
|---|---|---|---|
| Texas Roadhouse (Ground Lease) | 5.35% | 5.30% | ‑5 |
| Olive Garden | 5.85% | 5.75% | ‑10 |
| Chili’s | 6.00% | 5.85% | ‑15 |
| Outback Steakhouse | 6.40% | 6.40% | 0 |
| Buffalo Wild Wings | 6.65% | 6.60% | ‑5 |
| IHOP | 7.01% | 6.90% | ‑11 |
| Applebee’s | 7.60% | 7.60% | 0 |
| All Corporate Casual Dining | 6.60% | 6.55% | ‑5 |
Casual dining was a surprise performer in Q1. Chili’s compressed 15 basis points to 5.85%, driven by the brand’s resurgence in same‑store sales and renewed investor confidence in Brinker International’s operational turnaround. Olive Garden (Darden, S&P: BBB+) also tightened 10 basis points. The sector as a whole narrowed five basis points, reversing the narrative that casual dining is a structurally declining category. The data suggests investors are differentiating between brands that are reinvesting and those that are not.
The Bond‑to‑NNN Spread: Why Net Lease Outperforms Fixed Income
This is the comparison that no other market report makes, and it is the single most important framework for understanding net lease value. Many NNN tenants also issue investment grade bonds. The bond yields on those same credits provide a direct apples‑to‑apples comparison: you can lend a company money at their bond yield, or you can own real estate leased to the same company at the NNN cap rate. The difference is the NNN spread premium, and it exists because of three structural advantages that bonds cannot offer.
| Tenant | Credit Rating | ~Bond Yield (10yr) | NNN Cap Rate (Q1 2026) | NNN Spread Premium |
|---|---|---|---|---|
| McDonald’s | A / Baa1 | ~4.50% | 4.40% | ‑10 bps * |
| Chipotle | BBB+ / A3 | ~4.85% | 5.45% | +60 bps |
| Starbucks | BBB+ / A3 | ~4.75% | 6.45% | +170 bps |
| CVS Health | BBB / Baa3 | ~5.10% | 6.80% | +170 bps |
| Dollar General | BBB / Baa2 | ~5.30% | 7.15% | +185 bps |
| Home Depot | A / A2 | ~4.90% | ~5.00% | +10 bps * |
| Lowe’s | BBB+ / Baa1 | ~5.05% | ~5.25% | +20 bps * |
* Tenants marked with a negative or near‑zero nominal spread trade at cap rates near or below their bond yields. The premium is earned through tax advantages: 100% bonus depreciation, depreciation deductions against ordinary income, 1031 exchange tax deferral, and long‑term real estate appreciation. These benefits are unavailable to bondholders. Bond yields are approximate 10‑year maturities as of late Q1 2026, sourced from FRED/ICE BofA indices and InvestmentGrade.com bond research.
Why the spread matters: A Dollar General bond yields approximately 5.30%. A Dollar General NNN property yields 7.15%. That is a 185 basis point premium for owning real estate backed by the same corporate credit. The NNN investor also gets depreciation deductions that shelter a significant portion of the cash flow from current taxation, plus the ability to defer all capital gains upon sale through a 1031 exchange. The bond investor gets none of these benefits. This spread is the foundational argument for net lease as an asset class.
Transaction Volume & Institutional Activity
Multiple data sources confirm that net lease transaction activity remained robust in Q1 2026, building on momentum from a strong Q4 2025. Industry forecasts project full‑year 2026 NNN transaction volume in the range of $34 to $36 billion, representing 5% to 12% growth over the estimated $32.1 billion in 2025 total volume. Q1 2026 volume is estimated at $8.2 to $8.8 billion.
The institutional appetite for net lease remains strong. Realty Income (NYSE: O, S&P: A‑ / Moody’s: A3) invested approximately $2.4 billion in Q4 2025 alone at an initial weighted average cash yield of approximately 7%, per its January 2026 SEC 8-K filing. NNN REIT (NYSE: NNN) posted record acquisition volume exceeding $900 million for full‑year 2025, increased its dividend for the 36th consecutive year, and maintained 98.3% occupancy. NNN REIT issued 2026 earnings guidance of $2.02 to $2.08 per share (excluding gains), giving investors a clear benchmark for how 2025 acquisition activity is flowing through to the bottom line.
SRS Capital Markets, one of the largest NNN brokerage platforms, reported $1.2 billion in transaction volume across 350 properties in the first half of 2025, more than 30% ahead of the same period in 2024. Their commentary highlights continued bifurcation: strong competition for Class A assets in core markets, with Class B and C product lagging behind with thinner buyer pools.
Market Bifurcation: Investment Grade vs. Non‑Investment Grade
The data from Q1 2026 reinforces a trend that has been building for multiple quarters: the net lease market is increasingly bifurcated between premium credit assets with long remaining lease terms and shorter‑term or non‑rated assets. The pricing gap between these two tiers has widened to levels that create distinct investment strategies.
| Asset Tier | Typical Cap Rate Range | Typical Lease Term | Buyer Profile |
|---|---|---|---|
| Trophy (AA‑ to A) | 4.20% to 5.50% | 15+ years | 1031 buyers, family offices, institutional |
| Core (BBB+ to BBB) | 5.50% to 7.00% | 10 to 15 years | Private investors, small REITs, 1031 buyers |
| Investment Grade Floor (BBB‑) | 7.00% to 8.00% | 7 to 12 years | Yield‑focused private investors |
| Below IG / Non‑Rated | 7.50% to 9.50% | Under 10 years | Value‑add investors, re‑tenanting specialists |
The BBB‑ threshold at approximately 7.00% to 8.00% is the investment grade floor. Assets below this line attract a meaningfully thinner buyer pool, face wider bid‑ask spreads, and trade at elevated cap rates that reflect both credit risk and the difficulty of financing non‑rated tenants. For a deeper analysis of where each NNN tenant falls on the investment grade spectrum, see our comprehensive tenant credit ratings database.
Selected Q1 2026 Sales Comparables
The following notable closed transactions from Q1 2026 illustrate the breadth of the net lease market, from institutional‑scale office deals to single‑unit retail properties.
| Date | Tenant | Location | Price | Cap Rate | Term (Yrs) |
|---|---|---|---|---|---|
| Jan 2026 | Venice, CA | $39,600,000 | 7.25% | 4 | |
| Feb 2026 | Tesla | Valencia, CA | $33,000,000 | 6.30% | 13 |
| Mar 2026 | CrowdStrike | Redmond, WA | $23,000,000 | 7.30% | 6 |
| Feb 2026 | Albertsons | Fort Worth, TX | $11,750,000 | 5.70% | 13 |
| Jan 2026 | Publix | Foley, AL | $10,810,000 | 5.50% | 3 |
| Jan 2026 | 7‑Eleven | Chattanooga, TN | $9,221,314 | 5.35% | 14 |
| Feb 2026 | Hobby Lobby | Burlington, NC | $6,900,000 | 6.35% | 9 |
| Mar 2026 | Wawa | Wilson, NC | $5,550,000 | 5.29% | 17 |
| Mar 2026 | CVS | Chicago, IL | $5,338,000 | 6.50% | 12 |
| Mar 2026 | Walgreens | Eden Prairie, MN | $5,300,000 | 8.01% | 12 |
| Feb 2026 | Crunch Fitness | Cedar Hill, TX | $5,277,114 | 7.50% | 10 |
| Feb 2026 | Goodyear | Cornelius, NC | $5,000,000 | 4.80% | 14 |
Several patterns emerge from the Q1 comps. The 7‑Eleven in Chattanooga traded at 5.35% with 14 years remaining, consistent with the brand’s AA‑ credit quality and the premium investors pay for convenience store assets. The side‑by‑side CVS ($5.34M, 6.50% cap, 12 years) versus Walgreens ($5.30M, 8.01% cap, 12 years) in similarly sized deals with identical lease terms perfectly illustrates the 150+ basis point credit quality spread between the two pharmacy brands. The Goodyear at 4.80% with 14 years is a standout, reflecting the auto service sector’s appeal to long‑term income investors.
Capital Markets Context
The capital markets backdrop for Q1 2026 was defined by three forces: a patient Federal Reserve, a volatile Treasury curve, and geopolitical uncertainty in the Middle East that drove energy prices higher and inflation expectations upward.
| Metric | Start of Q1 (Jan 1) | End of Q1 (Mar 31) | Current (Apr 3) |
|---|---|---|---|
| Federal Funds Rate | 3.50% to 3.75% | 3.50% to 3.75% | 3.50% to 3.75% |
| 10‑Year Treasury | ~4.10% | 4.38% | 4.31% |
| Q1 High (10‑Yr) | 4.48% (late March) | ||
| Fed Rate Cuts Expected (2026) | Shifted from two to one, per market consensus | ||
| NNN Cap Rate vs. Fed Funds Spread | 6.80% minus 3.625% midpoint = 318 bps | ||
The key takeaway: net lease cap rates did not move in lockstep with the Treasury spike. While the 10‑Year surged nearly 30 basis points during Q1, overall net lease cap rates compressed one basis point. This decoupling reinforces the principle that property fundamentals, tenant credit quality, and lease duration are the primary drivers of NNN pricing, not interest rates alone. The 318 basis point spread between the overall NNN cap rate (6.80%) and the Fed Funds midpoint (3.625%) provides a substantial cushion, even if the Fed holds rates steady through 2026 as markets now expect.
Q2 2026 Outlook
Looking ahead to Q2 2026, several factors will shape net lease market dynamics:
100% Bonus Depreciation: The permanent reinstatement of 100% bonus depreciation in 2025 continues to drive demand for fee‑simple NNN assets, particularly convenience stores, car washes, and other qualifying property types. This tax tailwind should sustain transaction volume through the year.
Supply Compression: With inventory down 9.8% in Q1 and transaction activity remaining robust, available supply is likely to tighten further. This supply constraint should support current pricing levels and may drive modest compression for trophy and core assets.
Geopolitical and Inflation Risk: Rising energy prices stemming from Middle East tensions could push inflation expectations higher, potentially delaying any additional Fed rate cuts. If the 10‑Year Treasury sustains levels above 4.40%, some cap rate widening in the shorter‑term, non‑rated segment is possible, while investment grade assets should remain insulated.
REIT Acquisition Pipelines: With Realty Income, NNN REIT, and other public net lease REITs maintaining aggressive acquisition guidance, institutional demand will continue to provide a floor under pricing for the highest‑quality assets. W.P. Carey projects an increase in sale‑leaseback opportunities in 2026 as M&A activity accelerates and private equity firms use sale‑leasebacks to manage acquisition leverage.
The InvestmentGrade.com Q2 2026 NNN Cap Rate Report will be published following the Summer Solstice (June 20, 2026), coinciding with our quarterly data update cycle. For live updates on tenant credit ratings, visit the Investment Grade Credit Tenant Ratings page.
Frequently Asked Questions
What is the average NNN cap rate in Q1 2026?
The overall single‑tenant net lease cap rate in Q1 2026 is 6.80%, down one basis point from Q4 2025. Retail cap rates averaged 6.55% (unchanged), industrial averaged 7.15% (down 5 bps), and office averaged 7.90% (down 10 bps). These figures represent asking cap rates on properties currently marketed for sale across the United States.
What NNN tenants have the lowest cap rates?
McDonald’s ground leases trade at the lowest cap rates in the NNN market at approximately 4.40% in Q1 2026. Chick‑fil‑A ground leases follow at 4.50%. Other trophy‑tier tenants include Raising Cane’s (5.00%), Texas Roadhouse ground leases (5.30%), and Wawa (approximately 5.00% to 5.20%). These cap rates reflect investment‑grade or equivalent credit quality combined with long remaining lease terms of 15 years or more.
How do NNN cap rates compare to bond yields?
NNN cap rates for most tenants trade at a significant premium to the same company’s bond yields. For example, Dollar General NNN properties yield approximately 7.15% while Dollar General BBB bonds yield approximately 5.30%, a spread of 185 basis points. CVS NNN properties yield approximately 6.80% versus CVS bonds at approximately 5.10%, a 170 basis point spread. This premium exists because NNN investors take on real estate risk but also receive tax advantages unavailable to bondholders, including depreciation deductions and 1031 exchange tax deferral.
Are NNN cap rates expected to compress in 2026?
Industry data suggests modest compression is possible for investment‑grade assets with long lease terms, driven by supply contraction (down 9.8% in Q1) and sustained buyer demand. However, the outlook is complicated by the 10‑Year Treasury hovering near 4.30% to 4.40% and inflation concerns from rising energy prices. The market consensus has shifted from two expected Fed rate cuts in 2026 to just one, which limits the likelihood of broad‑based cap rate compression. Investment‑grade assets should hold steady or tighten modestly, while non‑rated and shorter‑term assets may face continued widening.
What is the NNN cap rate spread over the 10‑Year Treasury?
As of Q1 2026, the overall NNN cap rate of 6.80% provides a 242 basis point spread over the 10‑Year Treasury at 4.38%. Individual sector spreads range from just 2 basis points for McDonald’s ground leases to 372 basis points for Walgreens properties. The sector‑level retail spread is 217 basis points, industrial is 277 basis points, and office is 352 basis points.
Looking for NNN Properties?
InvestmentGrade.com represents buyers and sellers of net‑leased properties backed by investment‑grade tenants. Whether you are executing a 1031 exchange, building a passive income portfolio, or evaluating a disposition, our team provides institutional‑quality research and represents investors and owners across acquisitions, dispositions, sale-leasebacks, and 1031 exchanges. On most acquisitions there is no separate fee paid by the buyer because we are typically compensated through the cooperating commission paid by the listing side at closing. Contact us to discuss your situation.
Sources & Methodology: This report aggregates data from multiple independent industry sources to provide the most comprehensive view of the Q1 2026 net lease market available. National asking cap rate data and sector‑level tenant breakdowns are sourced from publicly released Q1 2026 net lease research reports published by national net lease brokerage firms. Supplemental market context and Q4 2025 benchmarks are drawn from B+E Net Lease (TradeNetLease.com) quarterly cap rate reports, which utilize what the firm describes as the largest asking‑price dataset in the net lease industry, covering inventory, cap rates, and time‑on‑market metrics across retail, industrial, and specialty sectors. Transaction volume estimates incorporate data from SRS Capital Markets’ publicly reported mid‑year 2025 volume figures ($1.2 billion across 350 properties), NNNTripleNet.com’s 2026 volume forecasts ($34B to $36B full‑year), and public SEC filings from Realty Income Corporation (NYSE: O, 8-K filed January 2026) and NNN REIT, Inc. (NYSE: NNN, Q4 2025 earnings release). Institutional market outlook commentary is drawn from W.P. Carey Inc.’s 2026 Net Lease Outlook. Treasury yield data is sourced from the Federal Reserve Bank of St. Louis (FRED) DGS10 series and the U.S. Department of the Treasury Daily Treasury Rates. Federal funds rate and monetary policy context is sourced from Federal Reserve FOMC meeting statements (January and March 2026). Corporate bond yield approximations reference the ICE BofA BBB US Corporate Index (FRED series BAMLC0A4CBBBEY), Schwab’s 2026 Corporate Credit Outlook, and individual issuer bond data from InvestmentGrade.com’s bond research library. Tenant credit ratings are sourced from S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings as tracked by InvestmentGrade.com. All cap rate figures represent asking cap rates unless otherwise noted; closed transaction cap rates typically trade tighter than asking cap rates. This report is published for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Cap rates, credit ratings, and market conditions are subject to change. Readers should conduct their own due diligence and consult qualified professionals before making investment decisions.
