What are typical cap rates for Ross NNN properties?

NNN properties leased to Ross Dress for Less typically trade at cap rates between 5.0% and 6.0%. This range reflects lower-tier investment-grade credit with value retail sector positioning, offering attractive yields while maintaining tenant quality.

Is Ross Dress for Less a good NNN investment?

Ross represents a strong NNN investment due to its investment-grade BBB/Baa2 ratings, nearly 1,700 locations, over $20 billion in annual revenue, and proven off-price retail model that performs well across economic cycles. Cap rates of 5.0% to 6.0% offer solid risk-adjusted returns.

Ross Dress for Less Credit Rating & NNN Cap Rate Analysis

Q: What is Ross Dress for Less credit rating?

Ross Stores (ROST) holds investment-grade credit ratings of BBB from S&P and Baa2 from Moodyu2019s. These ratings reflect solid operational performance, consistent cash generation, and financial discipline across nearly 1,700 retail locations.

Q: What are Ross NNN lease terms?

Ross NNN lease terms typically range from 15 to 20 years with renewal options. Triple net leases transfer property taxes, insurance, and maintenance costs to the tenant, providing investors with predictable income backed by investment-grade credit.

Ross Dress for Less: Value Retail Leader

Ross Dress for Less, operating under Roscoe Apparel Co. and parent company WHP Global, operates as a leading off-price retailer specializing in branded apparel, footwear, and home goods at deep discounts. With nearly 1,700 locations across North America, Ross represents a proven value retail concept with strong customer appeal and consistent operational execution.

Ticker	ROST (parent company, Ross Stores Inc.)
Headquarters	Newark, California (Ross Stores Inc.)
Founded	1957
Locations	1,700+
Annual Revenue	$20+ billion
Operating Format	Off-price apparel, footwear, home goods
S&P Rating	BBB
Moody’s Rating	Baa2
NNN Cap Rate Range	5.0% – 6.0%

Business Overview

Ross Dress for Less operates as a discount department store focusing on branded apparel, footwear, and home goods purchased at closeout prices. The business model emphasizes merchandise excitement through rapidly rotating inventory and deep discount positioning. Ross has built significant scale with nearly 1,700 locations and strong brand recognition among value-conscious consumers. Operational excellence in real estate, inventory management, and labor efficiency drive consistent profitability and cash generation.

Credit Rating Analysis

Ross carries investment-grade ratings of BBB from S&P and Baa2 from Moody’s. These ratings reflect solid operational performance, consistent cash generation, and financial discipline. While in the lower investment-grade tier, Ross maintains investment-grade status due to strong comparable store sales growth, margin management, and capital allocation discipline. The company has demonstrated resilience through retail cycles with consistent dividend payments to shareholders.

NNN Lease Structure

Triple Net leases for Ross properties transfer property taxes, insurance, and maintenance costs to the tenant. Lease terms typically range from 15–20 years with renewal options. Ross’s investment-grade backing and operational track record provide solid lease payment reliability, making Ross NNN properties appropriate for institutional investors seeking value retail exposure.

Cap Rate & Pricing Analysis

NNN properties leased to Ross command cap rates in the 5.0% – 6.0% range, reflecting lower-tier investment-grade credit and value retail sector positioning. This cap rate range offers attractive yields while maintaining investment-grade tenant protection. Property valuations typically range from $3M – $10M depending on location and market conditions.

Real Estate Footprint

Ross maintains extensive geographic presence with 1,700+ locations across all 50 states. The real estate strategy emphasizes both metropolitan areas and secondary markets with strong value-conscious demographics. Properties typically occupy 20,000 – 35,000 square feet in accessible retail locations with strong parking and visibility. Real estate flexibility allows expansion in diverse market conditions.

Growth & Expansion

Ross pursues steady expansion with focus on underserved markets and consistent unit profitability. The company opens new stores while maintaining financial discipline and capital allocation. Expansion emphasizes comparable store sales improvement and market share capture in value retail segment. Off-price retail trends support continued growth opportunity.

Investment Pros

Investment-Grade Status: BBB / Baa2 ratings provide lease security in lower investment-grade tier
Proven Business Model: 65+ years of off-price retail success demonstrates durability
Scale & Diversification: 1,700+ locations across all 50 states provide portfolio diversification
Value Resilience: Off-price model appeals to consumers across economic cycles
Strong Comparable Sales: Consistent comp sales growth demonstrates customer appeal
Operational Efficiency: Labor and inventory management expertise drives profitability
Dividend History: Consistent shareholder returns reflect financial discipline

Investment Cons

Lower-Tier Investment Grade: BBB / Baa2 ratings carry more credit risk than higher investment-grade anchors
Apparel Industry Exposure: Indirect exposure to broader apparel sector challenges
Labor Cost Inflation: Wage pressures impact operating margins and profitability
Real Estate Market Sensitivity: Property performance tied to local market conditions
Competition Intensity: Growing competition from off-price competitors and e-commerce
Merchandise Sourcing: Supply chain disruptions could impact inventory quality and availability

Comparable Tenants

Similar value retail and off-price investments include TJ Maxx (investment-grade), Burlington Coat Factory (below-investment-grade), and regional value retailers. Ross offers strong off-price position with established brand and geographic diversity within the investment-grade spectrum.

Frequently Asked Questions

What is Ross’s credit rating?

Ross carries investment-grade ratings of BBB from S&P and Baa2 from Moody’s, reflecting solid operational performance in the lower investment-grade tier.

What cap rates apply to Ross NNN properties?

Ross NNN properties typically command cap rates of 5.0% to 6.0%, reflecting lower-tier investment-grade credit and value retail positioning.

How has Ross demonstrated resilience in retail cycles?

Ross has maintained consistent profitability and dividend payments through retail cycles by focusing on value positioning, operational efficiency, and customer appeal to value-conscious shoppers regardless of economic conditions.

How many Ross locations exist?

Ross operates approximately 1,700 locations across all 50 states, with ongoing expansion in underserved markets supporting growth.

How does Ross compare to TJ Maxx as an investment?

Both offer off-price retail models with customer value appeal. TJ Maxx carries higher investment-grade ratings (A-/A2) and lower cap rates, while Ross offers higher yields (5-6%) with solid BBB-tier credit quality. Choice depends on risk-return preferences.

Call to Action

Explore Ross NNN Investment Opportunities: Investment-grade value retail properties leased to Ross offer attractive yields and solid tenant backing. Contact InvestmentGrade.com to discover available Ross NNN properties across target markets. Our specialists match institutional investors with value retail NNN opportunities balancing yield and credit quality.

The Only Ross Dress for Less NNN Advisor Whose Fee Comes From the Deal, Not From You

In NNN buyer representation, the listing broker pays the cooperating commission. That means you get a dedicated Ross Dress for Less NNN advisor handling sourcing, underwriting, financing, and closing — and on the majority of transactions, there is no separate fee to you as the buyer.

Here’s what that buys you:

Find It — On-market and off-market Ross Dress for Less NNN properties sourced and underwritten on your behalf. We know which markets are pricing correctly, which listings are overpriced for what the lease actually says, and where the spread is worth the move.

Fund It — Acquisition financing through 150+ lender relationships: life companies, CMBS, regional banks, and credit unions that know Ross Dress for Less-grade paper. Not the first approval that comes back. The best terms on the table for this specific credit and lease structure.

Exit It — Selling a Ross Dress for Less asset or repositioning through a 1031? Our Capital Markets desk runs a quiet, targeted process. Private investors, family offices, and institutional buyers who are actively acquiring Ross Dress for Less net lease — not a public blast that signals desperation to the market.

Not committed to Ross Dress for Less? Tell us your criteria — cap rate floor, credit tier, lease structure, geography, equity check size — and we’ll find the deal that fits. We represent investors across the full NNN credit spectrum, from QSR and pharmacy to industrial, medical, and big box retail. The tenant is a variable. Your criteria is the constant.

Get Your Free Ross Dress for Less NNN Consultation →

In a 1031 exchange with a deadline? Tell us your timeline — we move faster.

Related NNN Tenants

Own a Ross Dress for Less Property? Capital Markets Strategies Beyond Selling

Maturing debt and considering refinancing? Our capital markets team maintains 150+ lender relationships underwriting NNN properties across investment-grade and non-investment-grade credit tiers. We structure rate-and-term refinancing, cash-out refis, and bridge-to-perm takeouts.

Evaluating a 1031 exchange or disposition? We represent both sides of Ross Dress for Less NNN transactions — whether you are looking to exit at peak value, exchange into a higher-quality credit tenant, or reposition within the same sector.

Need a current valuation? We maintain live comps on Ross Dress for Less NNN transactions and can produce a Broker Opinion of Value within 48 hours reflecting today’s cap rate market.

Schedule a 15-minute capital markets consultation ?

Own multiple Ross Dress for Less properties? Considering an off-market sale?

Investment Grade represents owners on confidential disposition of Ross Dress for Less portfolios and individual properties through off-market direct-to-principal distribution to specialty REITs, private equity funds, and family offices. Ross Dress for Less buyer demand runs deep, and portfolio sales consistently produce stronger pricing than sequential individual sales because the institutional buyer pool is structured around portfolio acquisition.

For multi-property owners considering a portfolio disposition, see Selling Investment Grade NNN Off-Market: Tenant-by-Tenant Buyer Demand. For the full off-market framework covering individual property dispositions, sale-leasebacks, and 1031 coordination, see Off-Market CRE Sales: The Complete 2026 Guide.

The pre-listing conversation is at no cost and fully confidential. Email team@investmentgrade.com or see contact Investment Grade.