| Metric | Details |
|---|---|
| Parent Company | Avis Budget Group, Inc. |
| Credit Ratings | S&P: BB- |
| Investment Grade Status | Below Investment Grade |
| Sector | Car Rental / Mobility Services |
| Brands | Avis, Budget, Zipcar, Payless Car Rental |
| Median asking cap rate | Not shown: fewer than three active listings with a cap rate |
| Typical Lease Term | Varies; confirm in the lease |
| Guarantee Type | Varies; confirm the tenant and guarantor entity in the lease |
| Stock Ticker | CAR (NASDAQ) |
| Annual Revenue | $11.65 billion (FY2025, Form 10-K) |
Avis / Budget Business Overview & NNN Investment Profile
Avis Budget Group describes itself as a leading global provider of mobility solutions, operating under the Avis, Budget, Zipcar, Payless and other brands, with approximately 10,000 rental locations worldwide, including approximately 3,800 operated by licensees (Form 10-K for 2025). However, Avis Budget carries BB- ratings, placing it squarely in the non-investment grade speculative category.
For NNN investors, Avis Budget properties are a distinctly different risk profile from investment-grade tenants. The rental car industry is highly cyclical, capital-intensive, and sensitive to travel demand, used car values, and interest rate environments. Avis Budget reported a net loss of $1.8 billion for 2024, citing increased fleet and interest costs, and a net loss of $995 million for 2025, when revenue per day declined and per-unit fleet costs fell, excluding charges on the disposal of certain fleet (Forms 10-K for 2024 and 2025).
Avis / Budget Credit Rating Analysis
Avis Budget Group is not investment grade. Avis Budget Group, Inc. carries issuer rating of BB- from S&P Global Ratings: below the BBB-/Baa3 investment grade threshold. Ratings checked October 8, 2026. See the investment grade credit tenant ratings table.
Avis Budget’s BB- ratings are below the investment grade line. Risks Avis Budget describes in its Form 10-K for 2025 include its substantial outstanding debt obligations, volatility in travel demand and its reliance on asset-backed securities and global lending markets to fund its vehicle fleet. In 2025, vehicle depreciation and lease charges rose to 25.9% of revenues from 25.2% in 2024, mainly because of charges related to the disposal of certain fleet in the Americas, and interest expense on corporate debt rose to $422 million from $358 million (Form 10-K for 2025).
Source: S&P Global Ratings BB-, as of February 25, 2026. Ratings checked October 8, 2026.
Investors should monitor Avis Budget’s quarterly earnings for fleet cost per unit, revenue per day trends, and corporate leverage ratios. The company’s ability to manage its vehicle fleet, buying and selling vehicles at favorable prices, is a key driver of credit performance and NNN lease sustainability. Understanding the full credit rating spectrum is essential when evaluating non-investment grade tenants for NNN portfolios.
Avis / Budget NNN Lease Structure
Avis Budget reports operating or licensing Avis locations at virtually all major commercial airports and cities worldwide (Form 10-K for 2025). Property type, lease structure, remaining term and renewal options vary; confirm them in the lease.
Confirm which Avis Budget entity signs the lease and whether a parent company guarantees it. Given the non-investment grade rating, lenders may apply greater scrutiny, such as lower loan-to-value ratios and higher debt service coverage requirements.
Avis / Budget NNN Cap Rate & Pricing Trends
InvestmentGrade.com tracks too few active Avis Budget listings with an asking cap rate to show a median, so price a specific property on its lease, rent and location.A speculative-grade rating can justify a wider cap rate than investment-grade automotive tenants such as AutoZone (BBB/Baa1).
The credit risk requires careful evaluation of the tenant’s financial trajectory before acquisition.
Avis / Budget NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| About 10,000 rental locations worldwide, including licensees (Form 10-K for 2025) | BB-, below investment grade speculative rating |
| Speculative-grade credit can justify a cap rate premium vs. IG tenants | Highly cyclical industry sensitive to travel demand |
| Airport locations can carry strategic value | Fleet cost and residual value volatility compress margins |
| S&P rates Avis Budget Group BB- and Hertz CCC+ (see the comparable tenants table) | Capital markets reliance for fleet financing adds risk |
Comparable NNN Tenants
| Comparable Tenant | Rating |
|---|---|
| AutoNation | BBB- |
| BP / AMOCO | A-/A1 |
| Hertz | CCC+ |
What is Avis Budget’s credit rating?
Ratings on file for Avis Budget Group, Inc.: S&P: BB-. Our ratings database classifies it as not investment grade; investment grade means BBB‑/Baa3 or higher.
Is Avis Budget investment grade?
No. Avis Budget Group is not investment grade. Its BB- ratings indicate speculative-grade credit quality. Investors seeking investment-grade NNN tenants should evaluate alternative automotive sector tenants with BBB- or higher ratings.
What are asking cap rates for Avis Budget NNN properties?
We track too few active Avis Budget listings with an asking cap rate to show a median. Pricing for a specific property depends on the remaining lease term, rent level, location and lease guarantor, and asking cap rates are not closed-sale cap rates.
Related NNN Tenants
Avis / Budget Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Avis / Budget properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Avis Budget Group NNN Properties Observed For Sale
1 active Avis Budget Group net lease listing observed across public listing sources, most recently Oct 9, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Jacksonville, FL | $1,800,000 | 5.38% | 850 | 6.6 yrs | View listing |
Search all 1 observed Avis Budget Group listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
