FedEx vs UPS: Which NNN Investment Wins?

FedEx and UPS are two parcel carriers whose facilities appear in net lease listings, and both depend on logistics buildings that are tied to a delivery network. FedEx Corporation is rated BBB/Baa2 (S&P / Moody’s) in our ratings database, which classifies it as investment grade. For United Parcel Service, Inc., our ratings database holds an S&P rating of A and no verified Moody’s rating. In the listings we track, FedEx asks a live median cap rate of 6.65%, while a UPS median is shown only when our data holds at least three UPS listings with a cap rate.

This comparison applies the framework from our investment grade guide: credit first, then lease structure, then the real estate. The two carriers are both rated above the BBB-/Baa3 line, so the useful questions are which entity signs the lease, how the building fits a network that each company is reshaping, and what another logistics user could do with the space.

FedEx vs UPS: Head-to-Head Comparison

Ratings per our tenant ratings database. FedEx: Ratings checked October 8, 2026. UPS: Ratings checked October 8, 2026. Revenue and facility figures are from the companies’ Form 10-K filings as labeled. Median asking cap rates and counts are live values from the active listings InvestmentGrade.com tracks; a few cap rates are calculated from a listing’s stated price and income rather than stated in the listing. Asking cap rates are not closing cap rates.

Credit: Two Investment Grade Parents, Different Rating Records

FedEx Corporation’s unsecured debt is rated BBB/Baa2 (S&P / Moody’s) in our ratings database, and its fiscal 2026 Form 10-K reports revenue of US$94.7 billion for the year ended May 31, 2026. The full profile is on the FedEx credit rating and cap rate page.

United Parcel Service, Inc. is rated A by S&P in our database, and that is the only agency rating we have verified for it. Its 2025 Form 10-K reports total revenue of $88.7 billion, and Amazon.com, Inc. accounted for approximately 10.6% of 2025 consolidated revenue. The same filing, made in early 2026, says UPS’s strategy involved reducing volume from Amazon by more than 50% by June 2026 from 2024 levels, so the customer mix behind its network is changing. Details are on the UPS credit rating and cap rate page, and both carriers can be benchmarked in our credit tenant ratings database.

A missing Moody’s rating for UPS in our database reflects what we have verified against a primary source, not a statement that no such rating exists. For either carrier, the rating applies to a lease only if the rated company signs or guarantees it.

Network Changes: What Each Carrier Has Disclosed

Both carriers are consolidating their networks, and a net lease buyer should treat that as a lease question, not a headline. FedEx merged FedEx Ground Package System, Inc. and FedEx Corporate Services, Inc. into Federal Express Corporation on June 1, 2024 (fiscal 2025 Form 10-K), and completed the spin-off of FedEx Freight as a separate public company on June 1, 2026. Its 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.

UPS’s 2025 Form 10-K says it closed daily operations at 93 leased and owned buildings in 2025. It also says it has made and continues to make reductions in the number of its facilities, so check the latest UPS filings for the current count before relying on any one building.

Closures do not by themselves end a lease. Rent obligations depend on the lease terms, and a closed building can still be paid for under a lease. What the disclosures mean for a buyer is that a facility’s role in the network, and the remaining lease term, matter alongside the parent’s rating.

Lease Structure: Who Signs, and What the Building Can Become

For FedEx, the tenant on a given lease can be Federal Express Corporation, another FedEx subsidiary or FedEx Freight, which now carries the credit of a separate company. Where FedEx Corporation guaranteed a FedEx Freight lease, confirm the current guarantor in the lease and an estoppel certificate. For UPS, confirm whether United Parcel Service, Inc. or a subsidiary signs the lease and whether a parent guarantee applies.

Building type and size vary by property, so confirm each building’s use and its role in the carrier’s network. A specialized sort building may have a narrower pool of other users than a general-purpose warehouse, so clear height, truck courts, trailer parking and the local logistics market belong in the underwriting. Check the rent schedule, renewal options and expense responsibilities in each lease, since terms and rent increases vary by property.

Cap Rates: Live Medians for Logistics Peers

Live asking cap rates for FedEx, UPS 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 19, 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. Not shown because fewer than 3 active listings with a published cap rate were observed: UPS, Amazon, XPO.

Tenants with fewer than three active listings that publish a cap rate are named under the table instead of shown, so the table is the current record of which carriers have enough data for a median. Asking cap rates vary with building type, remaining lease term, rent level, location and guarantor. They are what sellers ask, not what buyers paid.

The Bond-to-NNN Pivot

Income buyers can compare a logistics building against a bond benchmark. A corporate bond index for the matching rating category is one such benchmark, but it is a category measure rather than a quote on a FedEx or UPS bond, so the pre-tax comparison depends on where corporate yields stand when you buy. The cap rate table above shows each tenant’s median asking cap rate against the 10-year Treasury yield where a median is shown, and current index yields by rating category are on our corporate bond yields by rating page.

The case for owning the real estate rather than a bond rests on 1031 exchange eligibility, residual land value, scheduled rent increases where the lease has them, and building depreciation when the investor owns the building (see Internal Revenue Code Section 1031 and IRS Publication 946). The FedEx math is in FedEx Bonds vs NNN Real Estate, the sector view is in investment grade industrial bonds, and the broader framework is in what the bond-to-NNN spread means. Tax outcomes depend on your situation; this is general information, not tax advice.

Verdict: Which Carrier Wins?

On the ratings in our database, UPS shows an S&P rating of A and FedEx shows BBB from S&P, as of the check date under the table. FedEx also has a verified Moody’s rating on file and UPS does not, which describes what we have verified, not either company’s credit. The live table shows where sellers are asking for FedEx and whether enough UPS listings exist to show a median.

Neither answer replaces property-level diligence. The deciding factors are the lease obligor, the remaining term, the building’s role in the carrier’s network and what another logistics user could do with the space. If you are weighing a replacement property under a 1031 exchange deadline, compare buildings of the same type and confirm the tenant and any guaranty in the executed lease.