Looking to buy a Harbor Freight Tools NNN property? 13 are observed for sale across 8 states, median asking cap rate 6.25%. View Harbor Freight Tools NNN properties for sale, cap rate bands and the 1031 buyer guide.
| Metric | Details |
|---|---|
| Entity / Legal Name | Harbor Freight Tools USA, Inc. |
| Ownership | Family-owned; founded by Eric Smidt (company release, April 1, 2024) |
| Credit Ratings | S&P: BB- |
| Investment Grade Status | Below Investment Grade |
| Sector | Tools & Equipment Specialty Retail |
| US Store Count | More than 1,600 (company release, August 26, 2026); reached 1,500 stores in April 2024 |
| Median asking cap rate | See the live table below |
| Lease Term | Varies by lease; confirm the term and expense structure in each lease |
| Guarantee Type | Varies; confirm the tenant entity and any guarantee in each lease |
| Building Size | Median 17,461 SF in the Harbor Freight listings we track |
Harbor Freight Tools is not investment grade. Harbor Freight Tools USA, Inc. carries issuer rating of BB- from S&P Global Ratings: below the BBB-/Baa3 investment grade threshold. Ratings checked September 27, 2026. See the investment grade credit tenant ratings table.
Harbor Freight Tools Business Overview & NNN Investment Profile
Harbor Freight Tools, which has described itself as “America’s #1 tool store” (company release, April 1, 2024), operates more than 1,600 stores nationwide (company release, August 26, 2026). Harbor Freight started in Southern California in 1977, when Eric Smidt began bypassing middlemen and working directly with factories to pass the savings on to customers, and it opened its first store in 1980. The company describes itself as family-owned, and Eric Smidt was its founder and CEO as of April 2024 (company release, April 1, 2024).
Harbor Freight is rated below investment grade. S&P Global Ratings rates Harbor Freight Tools USA, Inc. BB-.
Harbor Freight Credit Profile: Qualitative Assessment
Harbor Freight is family-owned rather than owned by a private equity firm. It sells value-priced tools to professional contractors, homeowners and hobbyists, but because Harbor Freight does not publish financial statements, its performance in past downturns cannot be confirmed from public filings.
Harbor Freight’s exclusive brands include ICON, HERCULES, BAUER, U.S. GENERAL and PREDATOR (company release, August 26, 2026). Investors must factor the below investment grade S&P rating into their credit assessment.
Harbor Freight NNN Lease Structure
Harbor Freight lease terms vary. As of October 8, 2026, the Harbor Freight listings we track include both NNN and NN or NN+ lease types, and several report rent increases of 10% every five years. The median building size in the Harbor Freight listings we track is 17,461 square feet. Confirm the term, expense responsibilities, escalations and building size in each lease.
Harbor Freight NNN Cap Rate & Pricing Trends
Live asking cap rates for Harbor Freight Tools and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Tractor Supply | BBB / Baa1 | 6.05% | 6.00% to 6.34% | 40 | +81 bps |
| Harbor Freight Tools | BB- / n/a | 6.25% | 6.00% to 7.00% | 13 | +101 bps |
| Dollar General | BBB / Baa3 | 7.00% | 6.60% to 7.76% | 520 | +176 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.
Properties in smaller markets or with shorter remaining terms can price at higher cap rates to reflect rollover risk.
Harbor Freight NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| More than 1,600 stores nationwide (August 2026) | Below investment grade S&P rating |
| Value-priced tools for professionals and DIY customers | No public financial statements to confirm performance in downturns |
| Family-owned company started in 1977 (company release, April 1, 2024) | Private company: limited financial transparency without deal disclosure |
| S&P rating of BB- sits below the BBB- investment grade line |
Comparable NNN Tenants
| Comparable Tenant | Rating |
|---|---|
| Tractor Supply | BBB/Baa1 |
| Five Below | no verified rating |
| Dollar General | BBB/Baa3 |
Is Harbor Freight Tools investment grade?
No. S&P rates Harbor Freight Tools USA, Inc. BB-, below the BBB- investment grade threshold. It operates more than 1,600 stores (company release, August 26, 2026), but its S&P rating is below investment grade.
Who owns Harbor Freight Tools?
Harbor Freight describes itself as family-owned, and Eric Smidt, who started the company in 1977, was its founder and CEO as of April 2024 (company release, April 1, 2024). We found no Harbor Freight filer in SEC EDGAR.
What are Harbor Freight NNN asking cap rates?
Current median asking cap rates for Harbor Freight Tools and comparable tenants are shown in the live table on this page. 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.
Harbor Freight Tools Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Harbor Freight Tools 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.
Related NNN Tenants
- Barnes & Noble
- Bed Bath & Beyond
- Best Buy
- Big Lots
- BJ’s Wholesale Club
- Burlington
- Costco
- Dick’s Sporting Goods
- Dillard’s
- DSW
- Dunham’s Sports
- Five Below
- Floor & Decor
- Home Depot
- JCPenney
- Joann Fabric & Crafts
- Kirkland’s
- Kohl’s
- Lifetime Fitness
- Lowe’s
- Macy’s
- Michaels
- Nordstrom
- Office Depot / OfficeMax
- Old Navy / Gap
- Party City
- Petco
- PetSmart
- Planet Fitness
- Ross Dress For Less
- Staples
- The Container Store
- TJ Maxx / HomeGoods / Marshalls
- Tractor Supply Co.
- Ulta Beauty
- Ollie’s Bargain Outlet
- Target
- Walmart
- Sam’s Club
1031 buyer routing note
Harbor Freight is a private-company net lease tenant, so buyer diligence has to substitute for a public investment-grade rating. Compare lease term, rent level, store format, and private-credit risk against 2026 NNN cap rates and the 1031 tenant-selection framework before choosing yield over rated-credit alternatives.
Harbor Freight Tools NNN Properties Observed For Sale
13 active Harbor Freight Tools net lease listings 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 | |
|---|---|---|---|---|---|
| Yakima, WA | $4,000,000 | 5.69% | 15,166 | n/a | View listing |
| Moses Lake, WA | $4,583,333 | 6.00% | 15,000 | n/a | View listing |
| Pearl, MS | $1,735,000 | 6.50% | 15,000 | n/a | View listing |
| BINGHAMTON, NY | $2,628,864 | 6.25% | 16,500 | n/a | View listing |
| MIDLAND, MI | $1,945,000 | 7.00% | 14,585 | n/a | View listing |
| GURNEE, IL | $1,654,510 | 7.25% | 20,568 | 7.9 yrs | View listing |
| Danville, IL | $1,900,000 | 7.50% | 23,500 | 4.9 yrs | View listing |
| Carrollton, GA | $4,732,000 | 6.25% | 19,714 | 13.1 yrs | View listing |
Search all 13 observed Harbor Freight Tools 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.
