Nordstrom Credit Rating & NNN Cap Rate

Nordstrom Business Overview & NNN Investment Profile

Nordstrom describes itself as a leading fashion retailer and operated 92 Nordstrom stores and 277 Nordstrom Rack stores as of February 1, 2025 (Form 10-K). The Seattle-based company was founded in 1901 as a retail shoe business, and on May 20, 2025, members of the Nordstrom family and El Puerto de Liverpool completed their acquisition of the company; trading in its common stock on the NYSE was suspended before the market opened on May 21, 2025 (Form 8-K, May 20, 2025). The family partnered with El Puerto de Liverpool, a Mexican omnichannel retailer with a leading presence in department stores, to complete the buyout. Despite the delisting, Nordstrom continues to be rated; our ratings database records S&P and Fitch ratings dated 2026.

Nordstrom Credit Rating Analysis

Nordstrom’s BB ratings sit below investment grade. Credit considerations include the additional debt from the 2025 take-private transaction, including $450 million borrowed under a new asset-based credit facility at closing (Form 8-K, May 20, 2025). Nordstrom describes itself as a leading fashion retailer operating two banners, Nordstrom and the off-price Nordstrom Rack (Form 10-K for fiscal 2024).

Source: S&P Global Ratings BB, as of April 10, 2026; Fitch Ratings BB, as of January 9, 2026. Ratings checked October 8, 2026.

The take-private changed both the balance sheet and the reporting. The transaction was funded in part with new borrowing, and Nordstrom filed a Form 15 with the SEC on June 2, 2025 to deregister its securities, so buyers should confirm what financial information the tenant will provide. El Puerto de Liverpool, a Mexican omnichannel retailer with a leading presence in department stores, funded part of the transaction with about $863 million in cash and about $367 million through a shareholder loan to the acquiring parent (Form 8-K, May 20, 2025).

Nordstrom Rack NNN Opportunities

For NNN investors, Nordstrom Rack presents a different investment profile than full-line Nordstrom stores. Nordstrom Rack stores averaged about 34,000 SF (9.6 million SF across 279 Rack locations at February 1, 2025), and 278 of those 279 locations were leased buildings on leased land (Form 10-K). Confirm the tenant entity and any guarantee in each Rack lease; the smaller format can mean a lower price point, which can widen the pool of potential buyers.

Nordstrom NNN Cap Rate & Pricing Trends

Live asking cap rates for comparable tenants (Nordstrom appears when we track enough current listings):

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: Nordstrom, Macy's, Dillard's.

Nordstrom NNN Investment: Pros & Cons

Comparable NNN Tenants