Five Below Credit Rating & NNN Cap Rate

Metric	Details
Company	Five Below, Inc. (Nasdaq: FIVE), Philadelphia, Pennsylvania
S&P / Moody’s	no verified rating / no verified rating
Investment grade status	Not Yet Verified
Stores	2,022 stores in 46 states (August 1, 2026), up from 1,858 a year earlier
Median asking cap rate	Too few current listings to report

Five Below: no confirmed agency rating. No rating for Five Below has been verified against a primary source (an agency rating action or an issuer filing), so none is shown. If a rating is verified, it will appear here. Ratings checked October 8, 2026. See the investment grade credit tenant ratings table.

Five Below Business Overview

Five Below is a discount retailer aimed at teens and pre-teens, with most products priced at $5 and below and some priced over $5 (Form 10-K for fiscal 2025). It operated 2,022 stores in 46 states as of August 1, 2026, up from 1,858 a year earlier.

Five Below Credit Profile

Five Below has no public credit rating in our database, so we do not show it as investment grade. It is a public company that files audited financial statements with the SEC, which investors can use to assess its credit. Confirm that Five Below, Inc. or a guaranteeing entity signs the lease.

Ratings come from our tenant ratings database, which records the source of each rating. A rating at or above BBB‑/Baa3 is investment grade; see the investment grade guide.

Source: No agency rating has been verified against a primary source. Ratings checked October 8, 2026.

Five Below NNN Cap Rates

Live asking cap rates for Five Below and comparable tenants:

Tenant	S&P / Moody’s	Median asking cap rate	Middle half of listings	Listings	Median vs. 10-year Treasury
Dollar General	BBB / Baa3	7.00%	6.60% to 7.76%	520	+176 bps
Dollar Tree	BBB / n/a	7.34%	6.76% to 8.00%	82	+210 bps

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 16, 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: Five Below, Ollie's Bargain Outlet, Burlington, Ulta Beauty.

Five Below’s Form 10-K for fiscal 2025 says its new store model is primarily in power, community and lifestyle shopping centers. The live table shows Five Below only when at least three current listings are available; compare a property with recent Five Below sales and with other discount retailers.

What to Check in a Five Below Lease

Tenant and guarantor: which entity signs the lease and whether a parent guarantees it.
Term and rent: remaining term, renewal options and the rent schedule; rent increases vary by lease.
Co-tenancy: for shopping center locations, co-tenancy and go-dark provisions.
Re-use: the size of the box and the pool of possible replacement tenants.
Rent versus market: whether rent is at or below market rent.

Pros and Cons

Strengths	Considerations
Growing store base and public financial statements	No public credit rating in our database
Value pricing, with most products priced at $5 and below	New stores are primarily in shopping centers (Form 10-K), where co-tenancy terms may apply
Small boxes (new store model of about 9,500 square feet, Form 10-K) that can suit other retail users	Exposure to teen spending and tariffs on imported goods

Frequently Asked Questions

Is Five Below investment grade?

We do not show Five Below as investment grade because our ratings database has no public credit rating for it. It does file audited financial statements with the SEC.

Is Five Below a public company?

Yes. Five Below trades on Nasdaq under the ticker FIVE.

How many Five Below stores are there?

Five Below operated 2,022 stores in 46 states as of August 1, 2026.

Sources: Five Below, Inc. Form 10‑Q for the quarter ended August 1, 2026 and Form 10‑K for fiscal 2025 (year ended January 31, 2026).

Depreciation and Cost Segregation
When the buyer owns the building, a cost segregation study may reclassify part of the purchase price, such as site improvements and some building systems and equipment, into 5-, 7- or 15-year property. That property can qualify for 100% bonus depreciation under Internal Revenue Code section 168(k) if it is acquired after January 19, 2025 and placed in service after that date; property is not treated as acquired after the date a written binding contract for it is entered into (IRS Notice 2026-11). How much qualifies varies widely by property and should be documented, for example in an engineering-based study. If the investor owns only the land under a ground lease and the tenant owns the building, the investor has no building to depreciate, because land cannot be depreciated (Treasury Regulation section 1.167(a)-2); equipment owned by the tenant is not the landlord’s to depreciate. Depreciation on the reclassified property, including bonus depreciation, can be recaptured as ordinary income on a sale (Internal Revenue Code sections 1245 and 1250). A 1031 exchange can defer gain on real property, but recapture can still apply in an exchange depending on the replacement property (sections 1245(b)(4) and 1250(d)(4)). This is general information, not tax advice; consult a tax professional. See the Depreciation by NNN Property Type.

Related: Gas Station Bonus Depreciation

Five Below Net Lease Property: Buying, Selling and Financing

Buying: We find on-market and off-market Five Below 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.

Five Below NNN Properties Observed For Sale

1 active Five Below net lease listing observed across public listing sources, most recently Oct 16, 2026. Asking figures as published by the listing party.

Location	Asking Price	Cap Rate	Building SF	Term Left
Forsyth, IL	$2,348,000	7.25%	11,350	10.0 yrs	View listing

Search all 1 observed Five Below 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.