FedEx Credit Rating & NNN Cap Rate

FedEx Business Overview

FedEx provides parcel, express and freight transportation. Revenue was US$94.7 billion in the fiscal year ended May 31, 2026.

Two structural changes matter to landlords. On June 1, 2024, FedEx Ground Package System, Inc. and FedEx Corporate Services, Inc. were merged into Federal Express Corporation, which now operates a single air-ground network; leases once signed by FedEx Ground are generally now obligations of Federal Express Corporation as the surviving company (both were Delaware corporations, and Delaware General Corporation Law section 259 attaches a merged company’s liabilities to the survivor), which you can confirm from the lease and an estoppel. On June 1, 2026, FedEx completed the spin-off of FedEx Freight into a separate public company, so leases signed by FedEx Freight now carry the new company’s credit; where FedEx Corporation guaranteed a FedEx Freight lease, the separation agreement provides for seeking a release of that guarantee, so confirm the current guarantor in the lease and an estoppel.

The legal merger is complete, but the operating network changes are still under way: FedEx’s fiscal 2026 Form 10‑K says its Network 2.0 program, which consolidates sortation facilities and pickup-and-delivery routes, is fully implemented in Canada and expected to be completed in the U.S. by the end of calendar 2027. Facility consolidation can lead to closures, so check how a specific building fits that plan.

FedEx Credit Profile

FedEx Corporation’s unsecured debt is rated BBB/Baa2 (S&P / Moody’s) in our ratings database (investment grade); its fiscal 2026 Form 10‑K reports these as senior unsecured (S&P) and unsecured (Moody’s) debt ratings. Confirm whether the tenant is Federal Express Corporation, another FedEx subsidiary or the spun-off FedEx Freight, and whether FedEx Corporation guarantees the lease.

Ratings come from our tenant ratings database and update when agencies change them. A rating at or above BBB‑/Baa3 is investment grade; see the investment grade guide.

Source: 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.

FedEx NNN Cap Rates

Live asking cap rates for FedEx and comparable tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.

FedEx facilities range from small service centers to large distribution buildings, and their asking cap rates can differ with size, term and location. Compare a property with FedEx listings of a similar type and remaining term.

What to Check in a FedEx Lease

• Tenant entity: Federal Express Corporation, another FedEx subsidiary, or FedEx Freight after its June 2026 spin-off.
• Guarantee: whether FedEx Corporation guarantees the lease.
• Network 2.0: whether the facility is likely to be consolidated as FedEx completes its U.S. network changes.
• Term and rent: remaining term, renewal options and the rent schedule; rent increases vary by lease.
• Building: clear height, truck courts and trailer parking, and how easily another logistics user could take the space.

Pros and Cons

Sources: FedEx Corporation Form 10‑K for the fiscal year ended May 31, 2026; ratings from InvestmentGrade.com’s ratings database.