FedEx-branded facilities appear regularly among the industrial net lease listings InvestmentGrade.com tracks. The median asking cap rate on the 11 active FedEx-branded listings with a published cap rate, as of October 16, 2026, is 6.65%, against an index yield of 6.19% for FedEx Corporation’s rating category, a spread of +46 bps. The sample is grouped by brand: it does not establish which entity signs or guarantees each lease, and it is not limited to leases backed by FedEx Corporation.
FedEx facilities are commonly leased by an operating subsidiary rather than by FedEx Corporation, which issues the bonds. FedEx Ground Package System, Inc. was merged into Federal Express Corporation on June 1, 2024, and FedEx Freight was spun off as a separate public company on June 1, 2026 (FedEx Form 10-K), so confirm which entity is the tenant today. Check whether the parent guarantees the lease; for a FedEx Freight facility, do not rely on FedEx Corporation’s rating unless the lease file documents a FedEx Corporation guaranty that continues after the separation. See the FedEx credit rating and NNN cap rate page.
FedEx Credit Profile
| Metric | Details |
|---|---|
| S&P rating | BBB (Stable) |
| Moody’s rating | Baa2 (Stable) |
| Status | Investment Grade |
| Rated entity in our database | FedEx Corporation |
| Rating sources | S&P Global Ratings BBB, Stable, as of July 20, 2026; Moody’s Baa2, Stable, as of July 20, 2026. Ratings checked October 8, 2026. |
The Spread: FedEx Bonds vs. NNN
The comparison uses the bond index yield for FedEx’s rating category against the median asking cap rate on active FedEx listings.
| Metric | FedEx bonds (rating-category index) | FedEx net lease properties |
|---|---|---|
| Yield measure today | 6.19% (ICE BofA BBB index) | Median asking cap rate 6.65% (11 listings with a cap rate) |
| Spread, cap rate minus index yield | Baseline | +46 bps |
| Obligor | The issuing entity named in the bond’s indenture | The entity that signs or guarantees the lease |
| Investment size | $2,000 minimum denomination on FedEx’s September 2026 notes (prospectus supplement) | $4.88M median asking price |
| Liquidity | Trades over the counter through dealers | Weeks to months to sell |
| Income taxation | Interest taxed as ordinary income (IRC 61(a)(4)) | Rent taxed as ordinary income (IRC 61(a)(5)), partly offset by depreciation of the building (IRC 168; land is not depreciable, Treas. Reg. 1.167(a)-2) |
| 1031 exchange | Not eligible (IRC 1031(a)(1) covers real property only) | Eligible if held for business or investment use (IRC 1031(a)(1)) |
| Value at the end | Face value at maturity absent default; market price moves before then | Depends on the property, lease term, and market |
| Income growth | Fixed coupon | Only if the lease provides rent increases |
Bond yield: ICE BofA effective yield index for FedEx’s rating category via FRED, as of October 1, 2026; it is an index average, not a quote on FedEx’s own bonds. Cap rate: median asking cap rate on active FedEx-branded listings InvestmentGrade.com tracks, as of October 16, 2026; asking cap rates are not closed-sale cap rates. n/a means too few listings to report a median.
Why the Spread Exists
Logistics buildings are specialized, and their value depends on location in the delivery network, the remaining term, and whether the lease is backed by the parent. FedEx says its Network 2.0 program is modernizing and consolidating sortation facilities in the U.S. and Canada, with U.S. implementation expected by the end of calendar 2027 (Form 10-K), so buyers may price the risk that a facility is consolidated as the network changes.
After-Tax Illustration
The table is a normalized full-year illustration, not a first-year tax projection. It compares a hypothetical bond position assumed to pay an annual cash coupon equal to the index effective yield (an index yield is not the coupon on any actual bond) with an all-cash net lease purchase of the same size at the median asking cap rate. Part of the difference in after-tax cash comes from depreciation. On a taxable sale, gain attributable to straight-line depreciation on the building is generally taxed at up to 25 percent as unrecaptured section 1250 gain (IRC 1(h)(1)(E)). The table does not show which investment does better over a full holding period, which also depends on any change in the property’s value, sale costs and taxes, and what the bond returns at maturity or sale.
| One full year, $2,000,000 invested, all cash | Bond at 6.19% (BBB index) | NNN at 6.65% cap rate |
|---|---|---|
| Pre-tax income | $123,800 | $133,000 |
| Depreciation (building only, 80% of price over 39 years) | $0 | $41,026 |
| Taxable income | $123,800 | $91,974 |
| Federal tax at 40.8% | $50,510 | $37,526 |
| After-tax cash | $73,290 (3.66%) | $95,474 (4.77%) |
Illustration only. Assumes no financing, a 20% land allocation (land is not depreciable), straight-line depreciation with no cost segregation, a combined 40.8% federal rate (37% plus the 3.8% net investment income tax) on both incomes, and no state tax. It ignores closing and management costs, rent changes, and the sale. On a taxable sale, the part of the gain up to the depreciation taken is generally taxed at up to 25% (IRC 1(h)(1)(E), 1(h)(6)), plus the 3.8% net investment income tax where it applies (IRC 1411). A 1031 exchange into like-kind real property can defer that tax (IRC 1031(a)), but gain is taxable up to the cash and the value of any other non-like-kind property received (IRC 1031(b)). With cost segregation or other accelerated depreciation, part of the gain can be taxed as ordinary income even in an exchange (IRC 1245(b)(4), 1250(d)(4)). A bond bought at par returns par at maturity. Bond yield is the ICE BofA index yield for the tenant’s rating category via FRED; cap rate is the median asking cap rate on active listings InvestmentGrade.com tracks. Consult a tax advisor for your situation.
Frequently Asked Questions
What is the spread between FedEx bonds and NNN cap rates?
The median asking cap rate on active FedEx-branded listings we track is 6.65% against an index yield of 6.19% for FedEx Corporation’s rating category, a spread of +46 bps. The sample is grouped by brand, not by lease obligor, and an asking cap rate and an index effective yield are different measures.
How is FedEx rated?
FedEx Corporation is rated BBB (Stable) by S&P and Baa2 (Stable) by Moody’s, per our ratings database.
Who is the tenant on a FedEx Ground facility?
Leases signed by FedEx Ground Package System, Inc. are generally now obligations of Federal Express Corporation, the FedEx subsidiary it was merged into on June 1, 2024 (FedEx Form 10-K); Delaware General Corporation Law section 259 attaches a merged company’s liabilities to the survivor. Confirm the current tenant with an estoppel. Confirm whether FedEx Corporation guarantees the lease before relying on the parent’s rating.
Considering FedEx Net Lease Property?
We source FedEx properties nationally and underwrite the lease, the obligor, and the real estate. On the majority of transactions, there is no separate fee to you as the buyer.
Find it: FedEx properties across lease terms and markets.
Fund it: financing matched to the tenant’s credit and the remaining lease term.
Exit it: buyers for FedEx properties, including 1031 exchange buyers.
Exchange it: 1031 execution against the deadlines.
Related Reading
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 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 SEC investor education, visit investor.gov.
