Automotive tenants, including auto parts retailers, tire and service centers, quick lubes, car washes and dealerships, are a large part of the net lease (NNN) market. Their buildings are usually freestanding, and the services are hard to replace with e-commerce. Credit quality varies widely, from investment grade parts retailers to highly leveraged private equity-owned service chains. This guide compares the main tenants’ credit ratings and live asking cap rates, and explains what to check in an automotive lease. For the rating scale, see the investment grade guide.
Automotive Tenant Credit Ratings
| Brand | Rated entity | S&P / Moody’s | Status | Lease note |
|---|---|---|---|---|
| AutoZone | AutoZone, Inc. | BBB/Baa1 | Investment Grade | Corporate leases |
| O’Reilly Auto Parts | O’Reilly Automotive, Inc. | BBB/Baa1 | Investment Grade | Corporate leases |
| NAPA Auto Parts | Genuine Parts Company (parent) | BBB-/Baa1 | Parent Rated Investment Grade (Genuine Parts Company); confirm the lease guarantor | Many NAPA stores are independently owned; only company-store leases or parent-guaranteed leases carry Genuine Parts credit |
| Firestone Complete Auto Care | Bridgestone Corporation (parent) | A/A1 | Parent Rated Investment Grade (Bridgestone Corporation); confirm the lease guarantor | Confirm whether the lease is signed or guaranteed by the rated parent or by a U.S. operating subsidiary |
| AutoNation | AutoNation, Inc. | BBB- | Investment Grade | Dealership properties; larger sites and higher prices |
| Advance Auto Parts | Advance Auto Parts, Inc. | BB | Below Investment Grade | Lost investment grade status; has been closing stores |
| Valvoline Instant Oil Change | Valvoline Inc. | BB | Below Investment Grade | Mix of company and franchised stores |
| Goodyear Auto Service | The Goodyear Tire & Rubber Company | BB- | Below Investment Grade | |
| Pep Boys | Mavis Tire Express Services Corp. (parent) | B- | Parent Rated Below Investment Grade (Mavis Tire Express Services Corp.); confirm the lease guarantor | Private equity-backed parent |
| Mister Car Wash | Mister Car Wash, Inc. | B | Below Investment Grade | |
| Jiffy Lube | Shell plc (brand owner) | A+/Aa2 | Investment Grade | Most stores are franchised; Shell’s rating does not back franchisee leases |
Ratings come from our tenant ratings database and update when agencies change them. Other common automotive tenants, such as Discount Tire, Monro and franchisees of Driven Brands concepts (Meineke, Take 5, Maaco), are privately held, unrated, or franchised; underwrite the operator’s financial statements and any guarantee.
Live Asking Cap Rates
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| AutoZone | BBB / Baa1 | 5.35% | 4.95% to 5.80% | 27 | +11 bps |
| Valvoline | BB / n/a | 5.50% | 5.25% to 5.70% | 47 | +26 bps |
| Firestone (rated entity: Bridgestone Corporation) | A / A1 | 5.63% | 5.19% to 6.00% | 20 | +39 bps |
| Mister Car Wash | B / n/a | 5.75% | 5.61% to 5.98% | 22 | +51 bps |
| O'Reilly Auto Parts | BBB / Baa1 | 6.00% | 5.60% to 6.38% | 27 | +76 bps |
| Goodyear | n/a / n/a | 6.00% | 5.43% to 6.45% | 19 | +76 bps |
| Shell | A+ / Aa2 | 6.25% | 5.75% to 7.00% | 38 | +101 bps |
| Pep Boys (rated entity: Mavis Tire Express Services Corp.) | B- / n/a | 6.38% | 5.88% to 6.88% | 6 | +114 bps |
| NAPA Auto Parts (rated entity: Genuine Parts Company) | BBB- / Baa1 | 6.75% | 6.00% to 7.50% | 12 | +151 bps |
| Advance Auto Parts | BB / n/a | 7.25% | 6.41% to 8.00% | 71 | +201 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 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.
Lower-rated and franchised tenants do not always ask higher cap rates than investment grade ones: location, lease term, rent level and whether the deal is a ground lease all affect pricing. Compare a specific property with listings for the same tenant and lease type.
What to Check in an Automotive Lease
- Who signs the lease: the rated parent, a subsidiary, or a franchisee, and whether there is a guarantee.
- Environmental issues: service, lube and tire operations handle oils and solvents; review environmental reports and lease indemnities.
- Store performance: where available, sales or rent coverage at the location, and whether the chain is closing stores.
- Industry change: electric vehicles need fewer oil changes and some different repairs, which affects quick lube and parts demand over a long lease. Collision, tire and general repair are less affected.
- Re-use: service buildings with bays can often be re-leased to other automotive users; the lot size and access matter.
- Lease terms: remaining term, renewal options, rent increases and landlord responsibilities.
Buying an Automotive Net Lease Property?
We can review the tenant’s credit, the lease and pricing against current listings. On the majority of transactions, there is no separate fee to you as the buyer for representation; the listing broker pays a cooperating commission.
Frequently Asked Questions
Is AutoZone investment grade?
Yes. AutoZone is rated BBB/Baa1 by S&P and Moody’s.
Is Advance Auto Parts investment grade?
No. Advance Auto Parts is rated BB by S&P and Moody’s, below the BBB‑/Baa3 threshold.
Does a franchised Jiffy Lube or NAPA store carry the parent’s credit?
Usually not. Franchisee or independent-owner leases are backed by the operator, not by Shell or Genuine Parts, unless the parent signs or guarantees the lease.
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.
