Sherwin-Williams and Tractor Supply are a net lease matchup between two rated retailers: Sherwin-Williams is rated BBB/Baa2 and Tractor Supply BBB/Baa1 (S&P/Moody’s, from our ratings database), and each company operates its own stores (2025 Forms 10-K). Beyond the ratings, the comparison also turns on real estate, lease terms and business model, which makes this pair useful for 1031 buyers comparing rated retail tenants.
One is a paint and coatings company whose Paint Stores Group operated 4,853 company-operated specialty paint stores in the United States, Canada and the Caribbean at December 31, 2025 (Form 10-K); store lease terms vary, so confirm them in each lease. The other describes itself as the largest rural lifestyle retailer in the United States and operated 2,395 Tractor Supply stores, plus 207 Petsense stores, in 49 states at December 27, 2025 (Form 10-K). Two rated tenants, different machines. How each rating fits the broader scale is covered in our investment grade guide.
Sherwin-Williams vs Tractor Supply: Head-to-Head NNN Metrics
| Metric | Sherwin-Williams | Tractor Supply |
|---|---|---|
| S&P / Moody’s Rating | BBB/Baa2 | BBB/Baa1 |
| Store count (Form 10-K) | 4,853 company-operated paint stores in the U.S., Canada and Caribbean (Dec. 31, 2025) | 2,395 Tractor Supply stores plus 207 Petsense (Dec. 27, 2025) |
| Annual net sales (Form 10-K) | $23.57B (2025) | $15.52B (fiscal 2025) |
| Median asking cap rate | See the live table below | See the live table below |
| Remaining lease term, listings we track | Average 7.3 years (10 listings state it) | Average 13.1 years (32 listings state it) |
| Rent increases described by listing brokers (as of October 8, 2026) | Vary: of 10 listings with readable bump details, 6 describe 10% increases and 2 describe annual increases | Vary: of 31 listings with readable bump details, 21 describe 5% every five years and 1 describes 10% every five years |
| Guarantee | Confirm the tenant entity and guarantor in each lease | Confirm the tenant entity and guarantor in each lease |
| Building and lot, listings we track | Median building 5,200 sq ft. As of October 8, 2026, 34 of 34 listings state a building size, and the median lot is 0.77 acres (34 of 34 listings state a lot size) | Median building 21,930 sq ft. As of October 8, 2026, 67 of 67 listings state a building size, and the median lot is 4.41 acres (62 of 67 listings state a lot size) |
| Ticker | SHW (NYSE) | TSCO (NASDAQ) |
Store counts and net sales are from each company’s 2025 Form 10-K; lease, building and lot data are from listings InvestmentGrade.com tracks; figures without a date update automatically, and dated figures are as of October 8, 2026. Rent bump details are listing broker descriptions, not executed rent schedules. Sherwin-Williams describes its paint stores as company-operated and owned 206 of them at December 31, 2025; Tractor Supply leased about 97% of its stores at December 27, 2025 (2025 Forms 10-K). Confirm the tenant entity and any guarantor in each lease. Ratings come from our ratings database. Sherwin-Williams: S&P Global Ratings BBB, as of August 6, 2026; Moody’s Baa2, as of July 29, 2025; Fitch Ratings BBB+, as of July 29, 2025. Ratings checked October 8, 2026. Tractor Supply: S&P Global Ratings BBB, Stable, as of February 19, 2026; Moody’s Baa1, Stable, as of February 19, 2026. Ratings checked October 8, 2026. Tractor Supply’s 2025 Form 10-K states its S&P and Moody’s ratings for senior unsecured debt, and Sherwin-Williams’ July 29, 2025 pricing term sheet states ratings for its senior unsecured notes.
Credit Comparison
Both tenants are rated; the ratings in the table above come from our ratings database, and the footnote under the table gives each agency source and date and the type of debt each company’s filings describe. Sherwin-Williams reported $23.574 billion of net sales in 2025 across three reportable segments (Paint Stores Group, Consumer Brands Group and Performance Coatings Group), and the company was founded in 1866 (2025 Form 10-K). Tractor Supply describes itself as the largest rural lifestyle retailer in the United States; it opened 99 new Tractor Supply stores in fiscal 2025 and 80 in fiscal 2024, and its net sales rose 4.3% to $15.52 billion in fiscal 2025 (2025 Form 10-K). Both entries sit side by side in our credit tenant ratings index.
The difference is what stands behind the rating. Sherwin-Williams is the larger company by net sales and operates three reportable segments. Tractor Supply grew faster in fiscal 2025: its net sales rose 4.3%, against 2.1% for Sherwin-Williams (each company’s 2025 Form 10-K). Each company’s annual report describes its own risk factors, and each lease shows which entity owes the rent.
Both companies operate their own stores. Sherwin-Williams reports its paint stores as company-operated, and Tractor Supply reports that it operated 2,602 stores at December 27, 2025 (2025 Forms 10-K). Neither fact shows which entity signed a given lease: identify the tenant and any guarantor in each lease before relying on the rated parent’s credit.
Cap Rate Analysis
Live asking cap rates for Sherwin-Williams, Tractor Supply and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| The Home Depot | A / A2 | 5.35% | 5.35% to 5.80% | 5 | +11 bps |
| Sherwin-Williams | BBB / Baa2 | 6.00% | 5.65% to 6.25% | 33 | +76 bps |
| Tractor Supply | BBB / Baa1 | 6.05% | 6.00% to 6.34% | 40 | +81 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 12, 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.
In the listings InvestmentGrade.com tracks, the two tenants differ in real estate and lease profile. Sherwin-Williams listings have a median building of 5,200 sq ft and an average remaining term of 7.3 years across the 10 listings that state one; Tractor Supply listings have a median building of 21,930 sq ft and an average remaining term of 13.1 years across the 32 that state one. As of October 8, 2026, 34 of 34 Sherwin-Williams listings and 67 of 67 Tractor Supply listings stated a building size, and the median lot was 0.77 acres for Sherwin-Williams (34 of 34 listings state a lot size) and 4.41 acres for Tractor Supply (62 of 67 listings).
Escalations vary by lease. As of October 8, 2026, in the listings InvestmentGrade.com tracks, 21 of the 31 Tractor Supply listings with readable bump details describe 5% increases every five years; on a 15-year term with increases in years 6 and 11, two 5% increases leave ending annual rent about 10.25% above the starting rent (1.05 times 1.05). For Sherwin-Williams, 6 of the 10 listings with readable bump details describe 10% increases and 2 describe annual increases. These are listing broker descriptions, not executed rent schedules, so read the rent schedule in each lease.
Lease and Real Estate Structure
Sherwin-Williams listings we track have a median building of 5,200 sq ft and an average remaining term of 7.3 years across the 10 listings that state one; confirm the term and expense obligations in each lease. Whether another user could backfill a building of that size if a store closes depends on the local market. The stores serve architectural and industrial paint contractors as well as do-it-yourself homeowners (2025 Form 10-K).
Tractor Supply’s 2025 Form 10-K gives a range of 15,000 to 20,000 square feet of inside selling space for its Tractor Supply stores, plus outside selling space. Listings we track show a median building of 21,930 sq ft and, as of October 8, 2026, a median lot of 4.41 acres among the 62 listings that state a lot size. The format is larger, so confirm which other users could backfill the building if needed.
Growth Trajectory
Tractor Supply opened 99 new Tractor Supply stores in fiscal 2025 and 80 in fiscal 2024 (2025 Form 10-K), and the average remaining term across its listings we track that state one is 13.1 years. Sherwin-Williams’ Paint Stores Group opened 83 stores and closed 3 in 2025, ending the year with 4,853, and states an objective of growing its store base by an average of about 2% a year (2025 Form 10-K); the average remaining term across its listings we track that state one is 7.3 years. Compare remaining term listing by listing; in the figures above, Sherwin-Williams listings are smaller buildings on smaller lots.
Bond-to-NNN Pivot: Two Spreads
Both companies have senior notes outstanding. At S&P, Sherwin-Williams is rated BBB and Tractor Supply BBB in our ratings database; each company’s filings state its S&P rating for senior unsecured debt, with sources and dates in the footnote under the comparison table. The ICE BofA BBB US Corporate Index yields 6.19% as of October 1, 2026. Against that index, the median Sherwin-Williams asking cap rate of 6.00% is a spread of −19 bps, and the median Tractor Supply asking cap rate of 6.05% is a spread of −14 bps. Pre-tax spreads move with bond yields and asking cap rates and are negative whenever the index yields more than the median asking cap rate. As general information, the real estate can add depreciation deductions on the building, not the land (IRC Section 167(a); Treas. Reg. 1.167(a)-2), eligibility for 1031 exchange treatment when real property held for business or investment use is exchanged for like-kind real property (IRC Section 1031(a)(1)), and rent escalations where the lease provides them, none of which the bonds provide. The issuer-level math is in our Sherwin-Williams Bonds vs NNN analysis and our Tractor Supply Bonds vs NNN analysis.
Verdict: Which NNN Investment Wins?
Neither tenant wins on every measure. Sherwin-Williams is the larger company by 2025 net sales, and its listings we track are smaller buildings on smaller lots. Tractor Supply grew net sales faster in fiscal 2025 and opened 99 new Tractor Supply stores, and its listings we track are larger buildings on larger lots. Compare the specific leases, because rent increases, remaining term, tenant entity and guarantee vary by property.
Sherwin-Williams vs Tractor Supply NNN: Frequently Asked Questions
Is Sherwin-Williams or Tractor Supply a better NNN credit?
In our ratings database, Sherwin-Williams is rated BBB/Baa2 and Tractor Supply BBB/Baa1 (S&P/Moody’s); the footnote under the comparison table gives each source and date. Both companies operate their own stores, but confirm the tenant entity and guaranty on each lease. Sherwin-Williams is the larger company by 2025 net sales ($23.574 billion), while Tractor Supply grew net sales faster in fiscal 2025 (4.3% against 2.1%), per each company’s 2025 Form 10-K.
What are typical Sherwin-Williams and Tractor Supply cap rates in 2026?
Current median asking cap rates for both tenants are shown in the live table on this page. Pricing differences between the two can reflect building size, lot size, remaining term and location. Pricing for a specific property also depends on the remaining lease term, rent level and lease guarantor, and asking cap rates are not closed-sale cap rates.
Do Sherwin-Williams or Tractor Supply use franchisees?
Neither company’s 2025 Form 10-K describes a franchise program. Sherwin-Williams reports its paint stores as company-operated and owned 206 of its 4,853 at December 31, 2025; Tractor Supply reports that it operated its stores and leased about 97% of them at December 27, 2025. Identify the tenant and any guarantor in each lease before relying on the rated parent’s credit.
Which tenant has stronger lease escalations?
It depends on the lease. As of October 8, 2026, in the listings InvestmentGrade.com tracks, 21 of the 31 Tractor Supply listings with readable bump details describe 5% increases every five years, while 6 of the 10 Sherwin-Williams listings with readable bump details describe 10% increases and 2 describe annual increases. These are listing broker descriptions, not executed rent schedules, so read the rent schedule in each lease.
How do their bond yields compare to NNN cap rates?
At S&P, Sherwin-Williams is rated BBB and Tractor Supply BBB in our ratings database; each company’s filings state its S&P rating for senior unsecured debt. The ICE BofA BBB US Corporate Index yields 6.19% as of October 1, 2026, against median asking cap rates of 6.00% for Sherwin-Williams and 6.05% for Tractor Supply. As general information, the real estate can add depreciation deductions on the building, not the land (IRC Section 167(a); Treas. Reg. 1.167(a)-2), 1031 exchange eligibility when real property held for business or investment use is exchanged for like-kind real property (IRC Section 1031(a)(1)), and rent escalations where the lease provides them, none of which the bonds provide.
Comparing rated retail tenants for an exchange? We source live Sherwin-Williams and Tractor Supply inventory, check lease terms in the lease documents, and model both rent schedules side by side. Request a buyer consultation before your 45-day identification clock forces the choice.
