NNN Cap Rates 2026: Live Asking Cap Rates by Tenant and Credit Rating

| by the Investment Grade Team

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This page tracks NNN cap rates from active net lease listings that InvestmentGrade.com monitors, updated automatically, so the figures reflect the market as of the date shown rather than a past quarter. It groups asking cap rates by tenant credit rating and by tenant, compares them with Treasury and investment grade bond yields, and explains what drives the differences. For the definition of investment grade and how ratings work, see the investment grade guide.

Quick Answer: Current NNN Cap Rates

As of October 9, 2026, the median asking cap rate across 6,695 active net lease listings with a published cap rate is 6.39%, and the middle half of listings ask between 5.75% and 7.15%. The 10-year Treasury yields 5.24%, so the spread between the median listing and the 10-year Treasury is +115 bps.

Asking cap rates are not closing cap rates; final prices are often negotiated. Within any tenant, cap rates vary widely with remaining lease term, rent increases, location, building versus ground lease, and who signs or guarantees the lease.

NNN Cap Rates by Tenant Credit Rating

The table groups listings by the S&P rating of tenants rated in their own name (or the Moody’s equivalent where S&P does not rate the tenant).

Tenant rating category (S&P, or Moody’s equivalent)Median asking cap rateMiddle half of listingsListings (tenants)
AA5.25%4.75% to 6.25%57 (6)
A5.25%5.00% to 6.00%298 (19)
BBB6.65%6.00% to 7.40%1,157 (24)
BB6.25%5.50% to 7.25%227 (16)
B7.00%5.75% to 8.39%378 (10)
Not publicly rated (private companies)6.15%5.15% to 7.50%725 (23)

Active listings InvestmentGrade.com tracks with an asking cap rate (stated, or computed from stated income and price when no rate is stated), listings last observed October 9, 2026, grouped by the rating of tenants rated in their own name; franchised brands rated only through a parent company are left out because a parent’s rating applies to a franchisee’s lease only if the parent signs or guarantees it. Asking cap rates are not closed-sale cap rates, and location, lease term, and ground lease structure move cap rates as much as the rating. Categories with fewer than 10 listings are not shown (CCC and lower).

Ratings are not a straight line to pricing. Higher-rated tenants often ask lower cap rates, but lower-rated groups can show low medians when they include many well-located restaurant or service sites, ground leases, or newer long-term leases. See the tenant credit ratings database for each tenant’s rating.

NNN Cap Rates by Tenant

Each table shows the median asking cap rate, the middle half of listings, the number of listings, and the median’s spread over the 10-year Treasury. Tenants appear only when at least five active listings publish a cap rate.

Quick-service restaurants and coffee

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
McDonald'sBBB+ / Baa14.00%3.75% to 4.15%43−124 bps
Chick-fil-An/a / n/a4.22%4.00% to 4.50%45−102 bps
Chipotlen/a / n/a5.00%4.75% to 5.25%89−24 bps
Taco Bell (rated entity: Yum! Brands, Inc.)BB+ / Ba25.50%5.00% to 5.85%54+26 bps
Dutch BrosNR / NR5.50%5.25% to 5.60%97+26 bps
StarbucksBBB+ / Baa15.75%5.35% to 6.19%118+51 bps
Dunkin' (rated entity: IRB Holding Corp. (Inspire Brands))n/a / n/a5.75%5.23% to 6.00%24+51 bps
Dairy Queen (rated entity: Berkshire Hathaway Inc.)n/a / n/a5.82%5.50% to 6.63%13+58 bps
Wendy'sB+ / n/a5.95%5.50% to 6.50%83+71 bps
Popeyes (rated entity: Restaurant Brands International Inc.)BB+ / n/a6.00%5.50% to 6.25%75+76 bps
Arby's (rated entity: IRB Holding Corp. (Inspire Brands))n/a / n/a6.00%5.75% to 6.45%40+76 bps
Burger King (rated entity: Restaurant Brands International Inc.)BB+ / n/a6.25%6.00% to 6.75%69+101 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 9, 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.

Casual dining

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
Olive Garden (rated entity: Darden Restaurants, Inc.)BBB / Baa25.50%5.15% to 5.75%9+26 bps
Chili'sBB+ / n/a5.50%5.45% to 6.12%7+26 bps
LongHorn Steakhouse (rated entity: Darden Restaurants, Inc.)BBB / Baa25.50%5.25% to 5.63%19+26 bps
Outback Steakhouse (rated entity: Bloomin' Brands, Inc.)B+ / n/a5.50%5.25% to 6.00%11+26 bps
Buffalo Wild Wings (rated entity: IRB Holding Corp. (Inspire Brands))n/a / n/a6.00%6.00% to 6.25%12+76 bps
IHOP (rated entity: Dine Brands Global, Inc.)NR / n/a6.25%6.00% to 6.91%17+101 bps
Applebee's (rated entity: Dine Brands Global, Inc.)n/a / NR7.00%6.46% to 7.63%26+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 9, 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.

Dollar stores and pharmacy

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
CVSBBB / Baa36.50%6.00% to 7.15%149+126 bps
Dollar GeneralBBB / Baa37.00%6.60% to 7.75%535+176 bps
Dollar TreeBBB / n/a7.34%6.75% to 8.00%84+210 bps
Walgreensn/a / n/a7.50%6.65% to 8.50%343+226 bps
Family DollarB / n/a8.50%8.00% to 9.00%176+326 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 9, 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.

Convenience stores and fuel

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
Wawan/a / n/a5.00%4.65% to 5.15%53−24 bps
Murphy USABB+ / n/a5.00%4.85% to 5.00%9−24 bps
Circle K (rated entity: Alimentation Couche-Tard Inc.)BBB+ / Baa15.12%5.00% to 5.50%36−13 bps
7-ElevenA- / Baa25.15%4.93% to 5.50%147−9 bps
Sheetzn/a / n/a5.25%5.00% to 5.50%13+1 bps
Speedway (rated entity: 7-Eleven, Inc.)A- / Baa25.25%5.13% to 6.38%11+1 bps
QuikTripn/a / n/a6.00%4.88% to 6.08%7+76 bps
ExxonMobilAA- / Aa27.15%6.00% to 7.20%5+191 bps
ChevronAA- / Aa27.25%6.38% to 7.38%7+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 9, 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.

Auto parts and service

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
AutoZoneBBB / Baa15.35%4.95% to 5.80%27+11 bps
ValvolineBB / n/a5.50%5.25% to 5.70%47+26 bps
Firestone (rated entity: Bridgestone Corporation)A / A15.63%5.19% to 6.00%20+39 bps
Mister Car WashB / n/a5.70%5.50% to 5.75%17+46 bps
O'Reilly Auto PartsBBB / Baa16.00%5.50% to 6.50%27+76 bps
Goodyearn/a / n/a6.00%5.43% to 6.45%19+76 bps
Pep Boys (rated entity: Mavis Tire Express Services Corp.)B- / n/a6.38%5.88% to 6.88%6+114 bps
NAPA Auto Parts (rated entity: Genuine Parts Company)BBB- / Baa16.75%6.00% to 7.50%12+151 bps
Advance Auto PartsBB / n/a7.25%6.44% to 8.00%72+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 9, 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.

Banks

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
Fifth Third BankA- / A34.63%4.50% to 5.06%16−62 bps
JPMorgan ChaseAA- / Aa25.00%4.75% to 5.38%35−24 bps
PNC BankA / A25.08%4.75% to 6.06%20−17 bps
Wells FargoA+ / Aa25.12%5.00% to 5.15%5−12 bps
Bank of AmericaA+ / Aa25.25%5.00% to 6.10%21+1 bps
U.S. BankA / A35.50%5.13% to 5.84%7+26 bps
TruistA / A36.25%6.16% to 7.00%5+101 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 9, 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.

Medical and dental

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
Heartland DentalB / n/a5.35%5.25% to 6.25%61+11 bps
Aspen DentalB- / n/a6.25%5.83% to 6.35%11+101 bps
ConcentraBB / n/a6.57%6.26% to 6.85%6+133 bps
DaVitaBB / n/a6.75%6.15% to 7.30%37+151 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 9, 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.

Other retail and service

TenantS&P / Moody’sMedian asking cap rateMiddle half of listingsListingsMedian vs. 10-year Treasury
KrogerBBB / Baa15.00%5.00% to 5.25%9−24 bps
WalmartAA / Aa25.13%4.44% to 5.81%6−12 bps
AlbertsonsBB+ / n/a5.75%5.50% to 9.00%5+51 bps
Sherwin-WilliamsBBB / Baa26.00%5.65% to 6.25%33+76 bps
PetcoB / n/a6.00%6.00% to 6.25%13+76 bps
Tractor SupplyBBB / Baa16.05%6.00% to 6.34%40+81 bps
Harbor Freight ToolsBB- / n/a6.25%6.00% to 7.00%13+101 bps
VerizonBBB+ / Baa16.50%6.03% to 7.49%27+126 bps
FedExBBB / Baa26.65%6.25% to 7.06%11+141 bps
Planet Fitnessn/a / n/a6.80%6.50% to 7.00%9+156 bps
AT&Tn/a / n/a7.00%6.43% to 7.16%11+176 bps
T-MobileBBB+ / n/a7.25%6.50% to 7.75%9+201 bps
Kohl'sB+ / B27.63%7.38% to 7.89%8+239 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 9, 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.

What Moves a Cap Rate

  • Tenant credit and the lease obligor. A brand’s rating backs a lease only if the rated company signs or guarantees it. Many restaurant leases are signed by franchisees; a corporate lease and a franchisee lease under the same brand can price far apart.
  • Remaining lease term. Shorter terms carry renewal and re-leasing risk, so they generally ask higher cap rates.
  • Ground lease or building. Ground leases often price tighter because the tenant owns and maintains the building, but the investor owns land, which cannot be depreciated.
  • Rent increases. A lease with regular rent bumps can justify a lower starting cap rate than a flat lease.
  • Location and real estate. Strong sites hold value if the tenant leaves; weak sites do not.
  • Interest rates and financing. Treasury yields and loan terms influence what buyers can pay, though cap rates do not move one for one with rates.

Ground Leases, Depreciation, and Taxes

The tightest-priced assets, such as many McDonald’s and Chick-fil-A properties, are often ground leases. A ground lease buyer owns land, and land is not depreciable, so depreciation and cost segregation benefits depend on whether the buyer also owns qualifying improvements and on the buyer’s own tax situation. A 1031 exchange can defer gain on a sale, and real estate can appreciate or lose value. Whether a net lease property produces a higher after-tax return than a Treasury or a corporate bond depends on the specific property, financing, and investor; it is not automatic. A tax advisor should model the actual assets being acquired.

Family Dollar and Dollar Tree Guarantees

Dollar Tree sold Family Dollar in July 2025 to Brigade Capital Management and Macellum Capital Management. Dollar Tree did not walk away from every lease: its August 2026 quarterly report says it is guaranteeing lease obligations for certain Family Dollar stores, amounting to $20.0 million in the second year and $10.0 million in the third year after the sale. Most Family Dollar leases are now backed by Family Dollar itself, which has no public credit rating in our database, so verify the tenant entity and any guaranty in each lease.

Cap Rates vs. Bond Yields on the Same Credit

Many NNN tenants also issue bonds. The table compares each tenant’s median asking cap rate with the ICE BofA index yield for its rating category, updated daily.

TenantS&P / Moody’sIndex yield (category)Median asking cap rate (listings with a cap rate)Spread
JPMorgan Chase
Bonds vs. NNN analysis
AA- / Aa25.80% (AA)5.00% (35)−80 bps
7-ElevenA- / Baa25.84% (A)5.15% (147)−69 bps
Dollar Tree
Bonds vs. NNN analysis
BBB / n/a6.19% (BBB)7.34% (84)+115 bps
Dollar General
Bonds vs. NNN analysis
BBB / Baa36.19% (BBB)7.00% (535)+81 bps
CVS
Bonds vs. NNN analysis
BBB / Baa36.19% (BBB)6.50% (149)+31 bps
Tractor Supply
Bonds vs. NNN analysis
BBB / Baa16.19% (BBB)6.05% (40)−14 bps
O'Reilly Auto Parts
Bonds vs. NNN analysis
BBB / Baa16.19% (BBB)6.00% (27)−19 bps
Starbucks
Bonds vs. NNN analysis
BBB+ / Baa16.19% (BBB)5.75% (118)−44 bps
AutoZone
Bonds vs. NNN analysis
BBB / Baa16.19% (BBB)5.35% (27)−84 bps
McDonald's
Bonds vs. NNN analysis
BBB+ / Baa16.19% (BBB)4.00% (43)−219 bps

Showing 10 tenants. Index yield is the ICE BofA effective yield index for the tenant’s rating category (US Corporate AAA, AA, A or BBB index; US High Yield BB, single-B or CCC and lower index), using the S&P rating, or the Moody’s equivalent where S&P does not rate, from the Federal Reserve Bank of St. Louis (FRED), as of October 1, 2026. It is an index average, not a quote on the company’s own bonds. Median asking cap rate is the median of asking cap rates (stated, or computed from stated income and price when no rate is stated) on active listings InvestmentGrade.com tracks, listings last observed October 9, 2026; asking cap rates are not closed-sale cap rates. Spread is the median asking cap rate minus the index yield. Ratings are the agency ratings in our ratings database for the entity shown; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company. The entity that signs or guarantees a given lease can differ, so confirm the lease obligor. Shaded rows are below investment grade. NR means the agency does not rate the entity; n/a means no verified rating is on file.

A positive spread means the property asks more than the bond index; a negative spread means less. The property adds real estate risk, illiquidity, and management, along with potential depreciation, appreciation, and 1031 exchange deferral. The full comparison is in the bond-to-NNN spread analysis.

Methodology

Figures come from active net lease listings that InvestmentGrade.com tracks across many sources. A listing counts if it is a qualified single-tenant net lease property, currently active (not under contract or closed), not suppressed as a duplicate or error, asking at least $150,000, and publishes a cap rate. Tenant groupings use our tenant mapping; ratings come from our verified ratings database; Treasury and bond index yields come from the Federal Reserve Bank of St. Louis (FRED). Data refresh several times a day, so figures can differ slightly between visits. This page replaced a quarterly snapshot on October 4, 2026; it no longer publishes forecasts.

Buying or Selling a Net Lease Property?

We can price a specific property against current listings and recent trades, review the lease and guarantor, and source on-market and off-market options. On the majority of transactions, there is no separate fee to you as the buyer for representation; the listing broker pays a cooperating commission.

Request an NNN investment consultation

Frequently Asked Questions

What is the average NNN cap rate right now?

As of October 9, 2026, the median asking cap rate across 6,695 active net lease listings InvestmentGrade.com tracks is 6.39%, with the middle half between 5.75% and 7.15%. Asking cap rates are not closing cap rates.

Why do McDonald’s and Chick-fil-A properties trade at such low cap rates?

Many are ground leases with long terms on strong sites, which buyers value highly, and the brands have deep buyer demand. Ground lease buyers own land, which is not depreciable, so the tax picture differs from a building purchase.

Do investment grade tenants always trade at lower cap rates?

Often, but not always. Lease term, location, rent increases, and whether a lease is corporate or franchisee can outweigh the rating. Compare specific leases, not just ratings.

How do NNN cap rates compare with Treasury yields?

The 10-year Treasury yields 5.24%, and the spread between the median NNN asking cap rate and that yield is +115 bps. Cap rates do not move one for one with Treasury yields.

Did Dollar Tree stop guaranteeing Family Dollar leases?

Mostly, but not entirely. After selling Family Dollar in July 2025, Dollar Tree reported guaranteeing lease obligations for certain Family Dollar stores, amounting to $20.0 million in the second year and $10.0 million in the third year after the sale. Check each lease and guaranty.

Where do these numbers come from?

Active net lease listings InvestmentGrade.com tracks, filtered to qualified single-tenant properties that publish an asking cap rate, with ratings from our ratings database and rates from FRED. See the methodology section.

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.

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