| Metric | Value |
|---|---|
| Parent Company | United Parcel Service, Inc. |
| Credit Ratings | S&P: A |
| Sector | Industrial/Logistics |
| US Package Facilities | About 1,000 owned or leased (2025 Form 10-K) |
| Median asking cap rate | Too few active UPS listings to show one; see comparable tenants below |
| Lease Term | Varies; confirm in the lease |
| Guarantee Type | Varies; confirm in the lease |
| Ticker | UPS (NYSE) |
| Revenue | $88.7 billion (FY2025, Form 10-K) |
UPS Business Overview & NNN Investment Profile
United Parcel Service, Inc. is a global package delivery and logistics provider with about 1,000 owned or leased US package facilities and $88.7 billion of total revenue in 2025. UPS reports two package segments, U.S. Domestic Package and International Package, and reports its remaining businesses, including forwarding and logistics, as Supply Chain Solutions (2025 Form 10-K). Lease terms and guarantees vary by property, so confirm whether United Parcel Service, Inc. or a subsidiary signs the lease and whether a parent guarantee applies.
For NNN investors seeking premium credit quality and essential logistics exposure, UPS is a logistics tenant rated A. Lease terms and rent increases vary by property; confirm them in the lease. UPS properties include distribution centers, package sorting facilities and regional logistics hubs, and building and lot sizes vary widely. The company’s strategy emphasizes growth in healthcare logistics, while its efficiency program has included building closures (2025 Form 10-K), so confirm a property’s role in the network.
UPS Credit Rating Analysis
Ratings for United Parcel Service, Inc.: S&P A; Moody’s no verified rating. A rating at or above BBB‑/Baa3 is investment-grade; check the outlook as well as the rating, and confirm whether United Parcel Service, Inc. signs or guarantees the lease.
Source: S&P Global Ratings A, as of November 13, 2025. Ratings checked October 8, 2026.
Healthcare logistics is a strategic growth focus for UPS; UPS’s global healthcare portfolio generated more than $11 billion of revenue in 2025 (2025 Form 10-K). The company’s 2025 restructuring included reducing its operational workforce by approximately 48,000 positions and closing daily operations at 93 leased and owned buildings (2025 Form 10-K). For comprehensive analysis of credit ratings and what A status means for NNN investors, explore how UPS’s financial profile bears on lease stability.
UPS NNN Lease Structure
UPS lease terms, rent increases, renewal options and guarantees vary by property. Confirm which entity signs the lease, whether United Parcel Service, Inc. guarantees it, the remaining term, the renewal options and the rent schedule.
UPS facilities include regional distribution centers, package sorting facilities and hub locations, and building and lot sizes vary widely. The property range reflects UPS’s diverse facility network, from small regional stations to large metropolitan distribution hubs. Expense responsibilities vary by lease, so confirm whether UPS pays operating expenses, property taxes, insurance, maintenance, roof and structure. Large-format industrial properties require sophisticated property management and facility-specific operational considerations.
UPS NNN Cap Rate & Pricing Trends
Live asking cap rates for UPS and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Amazon | AA / A1 | 6.43% | 6.02% to 6.44% | 3 | +119 bps |
| FedEx | BBB / Baa2 | 6.65% | 6.25% to 7.06% | 11 | +141 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. Not shown because fewer than 3 active listings with a published cap rate were observed: UPS, XPO.
Buyer demand for a UPS property depends on its size, location, remaining term and role in UPS’s network. The company’s restructuring includes network reconfiguration and building closures (2025 Form 10-K), so lease sustainability depends on each facility’s role in the network. For detailed guidance on evaluating cap rates and pricing across the institutional logistics NNN sector, see the investment grade guide for comprehensive analysis of premium-credit industrial NNN valuation.
UPS Real Estate Footprint
UPS owns or leases about 1,000 US package facilities with roughly 90 million square feet of floor space, ranging from regional hubs and sorting centers to local delivery stations (2025 Form 10-K). Its 2025 Form 10-K said its strategy involved reducing volume from Amazon.com, Inc. by more than 50% by June 2026 from 2024 levels and that it has made and continues to make reductions in the number of its facilities, so confirm a property’s role in the network before buying. UPS also owns or leases about 600 facilities with about 50 million square feet supporting its forwarding and logistics operations, including about 22 million square feet of healthcare-compliant warehousing (2025 Form 10-K).
UPS Growth & Expansion Outlook
Healthcare logistics is a growth focus for UPS; in 2025 UPS completed the acquisitions of Frigo-Trans and Andlauer Healthcare Group (2025 Form 10-K). UPS states a goal to become the number one complex healthcare logistics provider in the world (2025 Form 10-K).
UPS’s strategy focuses on growing in healthcare, business-to-business, small and medium-sized business and international markets (2025 Form 10-K). UPS’s strategy also includes closing buildings: it closed daily operations at 93 buildings in 2025 and identified 24 more for closure in the first half of 2026 (2025 Form 10-K), so demand for individual facilities can change.
UPS NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| Rated Credit: United Parcel Service, Inc. ratings: A; confirm whether it signs or guarantees the lease. | Large-Format Facilities: Large sort and distribution buildings can be difficult to repurpose if UPS vacates. |
| Diversified Revenue Streams: UPS reports U.S. Domestic Package, International Package and Supply Chain Solutions results, though Amazon accounted for 10.6% of its 2025 revenue (2025 Form 10-K). | Volume Volatility: E-commerce and business parcel volumes fluctuate with economic cycles. |
| Healthcare Logistics Growth: UPS’s healthcare portfolio generated more than $11 billion of revenue in 2025 (2025 Form 10-K). | Restructuring Execution Risk: 2025 network optimization may impact facility utilization and lease terms. |
| Scale: About 1,000 owned or leased US package facilities (2025 Form 10-K). | Rent Increases: Escalations vary by lease and may lag inflation; confirm them in the lease. |
Comparable NNN Tenants
| Tenant | Rating | Sector |
|---|---|---|
| FedEx | BBB/Baa2 | Logistics |
| Amazon | AA/A1 | Logistics |
| XPO Logistics | BB+ | Logistics |
Frequently Asked Questions About UPS NNN Investments
A: UPS’s global healthcare portfolio generated more than $11 billion of revenue in 2025, and its 2025 acquisitions of Frigo-Trans and Andlauer Healthcare Group expanded its healthcare cold chain capabilities (2025 Form 10-K). Growth in one business line does not show that a specific building will stay in use, so confirm the property’s role in the network, the tenant entity, any guarantee and the remaining term.
A: The restructuring program includes network optimization, headcount reductions, and facility consolidation to improve cost efficiency and margins. Investors should monitor the restructuring for potential facility consolidations or utilization changes. Whether rent continues after a facility closes depends on the lease, so confirm the tenant entity, any guarantee and any early termination or go-dark provisions.
A: Not necessarily. Building size and use, location, remaining term and whether the facility fits the tenant’s changing network can matter as much as the credit rating. Compare any offering with the live table, which shows a median asking cap rate when at least three listings with a published cap rate are available, and with recent sales.
A: It depends on the property and the lease. United Parcel Service, Inc.’s ratings (A) do not show whether a specific facility will stay in UPS’s network, which entity signs the lease or whether United Parcel Service, Inc. guarantees it. Confirm those points, the remaining term and the building’s re-use potential.
UPS Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market UPS properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Related NNN Tenants
1031 buyer screen: compare UPS credit before chasing yield
For 45-day identification buyers, UPS should be compared against the broader investment-grade NNN tenant shortlist for 1031 exchanges, not just against other logistics listings. The key question is whether the A corporate credit, remaining lease term, facility size, and exit market justify the cap rate shown on the offering memo.
Use the 2026 NNN cap-rate framework to benchmark the yield spread, then compare sibling industrial credits including FedEx and Amazon before finalizing a 1031 replacement-property ID list.
