Walmart and Costco both carry ratings above the investment grade threshold in our ratings database, so this comparison also looks at the real estate, lease terms and current listing availability. Walmart Inc. is rated S&P: AA / Moody’s: Aa2 / Fitch: AA and Costco Wholesale Corporation is rated S&P: AA, showing the agencies with a verified rating on file; live asking cap rates appear in the table below when at least three active listings publish one. Our investment grade guide explains the full ratings scale; this page applies it to Walmart and Costco and shows what actually separates them for a buyer.
Quick verdict: Walmart Inc. is rated S&P: AA / Moody’s: Aa2 / Fitch: AA. Costco Wholesale Corporation is rated S&P: AA. Walmart operated 4,611 U.S. stores at January 31, 2026 (Form 10-K). Costco operated 647 U.S. and Puerto Rico warehouses at August 30, 2026 and owned the land and building at 536 of them (Form 10-K for fiscal 2026); its membership model brings recurring fee income. There are too few eligible Costco observations in the listings we track to report a Costco median. For a buyer, the choice turns on store format, current availability and check size as much as on yield.
Walmart vs Costco: Side-by-Side Comparison
| Metric | Walmart | Costco |
|---|---|---|
| S&P Rating | AA | AA |
| Moody’s Rating | Aa2 | no verified rating |
| U.S. store count | 4,611 stores (Jan. 31, 2026) | 647 U.S. and Puerto Rico warehouses (Aug. 30, 2026) |
| Median asking cap rate | 5.13% (live table below) | n/a: too few eligible listings |
| Primary lease term | Varies; confirm in the lease | Varies; confirm in the lease |
| Escalations | Some leases escalate during the term or add sales-based rent; some renewal options include increases | Some leases have periodic increases tied to price indices or sales; confirm in the lease |
| Guarantee | Confirm in the lease whether Walmart Inc. signs or guarantees | Confirm in the lease whether Costco Wholesale Corporation signs or guarantees |
| Total revenue | $713.2B (fiscal year ended Jan. 31, 2026) | $303.2B (fiscal year ended Aug. 30, 2026) |
| Store size | Supercenters average about 178,000 SF of selling area (69,000 to 260,000) at Jan. 31, 2026 | Warehouses average about 148,000 SF, newer units slightly larger (fiscal 2026) |
Walmart store count, revenue and Supercenter selling areas from its Form 10-K for the fiscal year ended January 31, 2026. Costco warehouse count, ownership, revenue and average warehouse size from its Form 10-K for the fiscal year ended August 30, 2026. Live asking cap rates are in the table below.
Credit Rating Comparison: Walmart vs Costco
Walmart Inc. is rated AA by S&P and Aa2 by Moody’s, well above the BBB-/Baa3 investment grade cutoff. Sources and dates: S&P Global Ratings AA, as of July 31, 2026; Moody’s Aa2, as of July 31, 2026; Fitch Ratings AA, as of July 31, 2026. Ratings checked October 8, 2026.
Costco Wholesale Corporation’s ratings in our database: S&P: AA. Sources and dates: S&P Global Ratings AA. Ratings checked October 8, 2026. Costco’s membership model adds recurring fee income: membership fees were $5.9 billion in fiscal 2026, and member renewal rates were 92.3% in the U.S. and Canada and 89.8% worldwide at the end of fiscal 2026 (Form 10-K). Both are among the higher-rated tenants in our ratings database. Higher ratings indicate lower assessed credit risk; they do not eliminate default risk or lease and property risks.
Cap Rate Comparison: Live Asking Cap Rates and Availability
Live asking cap rates for Walmart, Costco and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Walmart | AA / Aa2 | 5.13% | 4.44% to 5.81% | 6 | −12 bps |
| The Home Depot | A / A2 | 5.48% | 5.35% to 5.75% | 6 | +23 bps |
| Lowe's | BBB+ / Baa1 | 5.75% | 5.63% to 5.80% | 3 | +51 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 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: Costco.
Each median in the table comes from the active listings we track for that tenant and describes those offers, not the wider market; asking cap rates are not closed-sale cap rates. With two credits rated this high, underwrite the real estate and the lease as closely as the rating.
Availability in the listings we track also differs. Walmart operated 4,611 U.S. stores at January 31, 2026 (Form 10-K), and the listings we track currently show 6 active Walmart offerings, last observed October 16, 2026. Costco owned the land and building at 536 of its 647 U.S. and Puerto Rico warehouses at August 30, 2026 (Form 10-K for fiscal 2026), and the listings we track currently show 1 active Costco offerings. These are snapshots of current offers, not a measure of how often either tenant’s properties trade. Full underwriting detail on each tenant: Walmart credit rating & NNN cap rate and Costco credit rating & NNN cap rate.
Lease Structure: Term, Escalations, and Guarantee
Lease terms vary by deal, so confirm the primary term, renewal options and guarantor in each lease. Of Costco’s 184 warehouse leases worldwide at August 30, 2026, 136 were land-only leases on which Costco owns the building (Form 10-K for fiscal 2026). Confirm in the lease which entity signs it and whether Walmart Inc. or Costco Wholesale Corporation guarantees it.
Escalation structure varies: Walmart says some of its store leases escalate during the original term and some renewal options include rent escalation clauses, and Costco says certain leases have periodic increases tied to price indices or sales. A long lease with flat rent can be sensitive to interest rates, much like a long-duration bond, and it remains exposed to tenant default and to property risks such as location, re-leasing and land value. Where rent is flat, underwrite land value and market rent as well as the tenant, because the land under a large-format site can be a significant part of the property’s value.
Store Footprint and Real Estate Strategy
Walmart’s 4,611 U.S. stores at January 31, 2026 span Supercenters, discount stores and Neighborhood Markets in all 50 states, Washington, D.C. and Puerto Rico, and Walmart reported total revenues of $713.2 billion for fiscal 2026 (Form 10-K). Walmart says growth in its U.S. eCommerce sales in fiscal 2026 was primarily driven by store-fulfilled pickup and delivery (Form 10-K).
Costco’s warehouses average about 148,000 square feet, with newer units slightly larger, and Costco opened 28 new warehouses, including three relocations, in fiscal 2026, against 27, including three relocations, in fiscal 2025 (Form 10-K for fiscal 2026). A large-format property can require a large check, which can narrow the pool of buyers.
Bond Yields vs NNN Cap Rates: The Pivot
Both companies issue corporate bonds. In our ratings database, Walmart Inc.’s S&P rating, which Walmart reports for its rated long-term debt in its SEC filings, is AA, and Costco Wholesale Corporation’s S&P rating is AA; the credit section above lists each rating’s source and, where recorded, its date. The ICE BofA AA US Corporate Index yielded 5.80% as of October 1, 2026 (FRED); that is an index average, not a quote on either company’s bonds. The median Walmart asking cap rate of 5.13% is a spread of −68 bps to that index; there are too few eligible Costco observations in the listings we track to report a Costco median. A thin or negative spread makes the after-tax comparison relevant; it is summarized below as general information, not tax advice.
- Depreciation: a landlord that owns the building can deduct depreciation on it. Land is not depreciable (IRS Publication 946), so the owner of a ground lease, where the tenant owns the building, has little or nothing to depreciate.
- Exchange and recapture: gain on real property held for investment or business use, and not held primarily for sale, may be deferred by exchanging it for like-kind real property identified within 45 days and received by the earlier of 180 days or the tax return due date, including extensions (IRC 1031(a)). A later taxable sale at a gain may trigger tax on depreciation previously deducted, depending on the property and the deductions taken (IRS Publication 544).
- Residual value: the owner holds the land, and the building where it owns it, and that value can rise or fall.
- Same credit only if the lease says so: a bondholder of Walmart Inc. or Costco Wholesale Corporation holds that company’s obligation; a property owner has that credit only where that company signs or guarantees the lease, so confirm the tenant and any guarantor.
A bondholder cannot use a Section 1031 exchange, which applies only to real property (IRC 1031(a)(1)). As a one-year cash illustration only: for a high-bracket investor who owns the building, depreciation can shelter part of the rent, so after-tax cash from a cap rate near the bond yield can exceed after-tax cash from the coupon; a ground lease offers little or no depreciation. That is not a lifetime return: a later taxable sale at a gain may trigger tax on prior depreciation (IRS Publication 544), and the comparison assumes the same company stands behind the lease. Full comparisons, with a worked one-year table on the Walmart page: Walmart bonds vs NNN and Costco bonds vs NNN.
Which Tenant Fits Which Buyer?
Walmart may suit a buyer who wants a tenant rated AA/Aa2 (Walmart Inc., S&P/Moody’s) and current offerings to choose from: the listings we track currently show 6 active Walmart listings in 5 states. For a 1031 exchange buyer, replacement property must be identified within 45 days of the transfer (IRC 1031(a)(3)(A)), so current availability matters. Confirm the tenant entity named in each lease.
Costco may suit a buyer who can write a large check, can wait for an offering, and wants a membership warehouse anchor on a large parcel; confirm whether Costco Wholesale Corporation signs or guarantees the lease and who owns the building.
Talk to a buyer’s broker before you commit. We track Walmart and Costco listings when they come to market and can benchmark an asking price against comparable listings we track. Request a buyer consultation and tell us your target cap rate, geography, and equity check size.
Frequently Asked Questions
Is Walmart or Costco a better NNN investment?
There are too few eligible Costco observations in the listings we track to report a Costco median, and lease terms vary by deal, so yield alone should not decide the choice. Walmart Inc. is rated S&P: AA / Moody’s: Aa2 / Fitch: AA; Costco Wholesale Corporation is rated S&P: AA. The listings we track currently show 6 active Walmart listings and 1 active Costco listings; Costco offers a membership warehouse format. The right choice depends on check size, timing, and the specific lease and real estate.
What are the credit ratings of Walmart and Costco?
In our ratings database, Walmart Inc. is rated S&P: AA / Moody’s: Aa2 / Fitch: AA and Costco Wholesale Corporation is rated S&P: AA. Both are above the BBB-/Baa3 investment grade threshold; the credit section above lists each rating’s source and, where recorded, its date.
What cap rates do Walmart and Costco NNN properties trade at?
The live table on this page shows median asking cap rates where at least three active listings publish one; there are too few eligible Costco observations in the listings we track to report a Costco median. Compare them with the AA corporate index yield shown above; tax treatment is one reason a buyer may accept a cap rate near or below a bond yield. Asking cap rates are not closed-sale cap rates.
Why might a buyer accept a Walmart cap rate near or below a bond index yield?
After-tax cash flow can differ. An owner of the building can deduct depreciation on it (land is not depreciable, so a ground lease offers little or none), may defer gain through a 1031 exchange if the requirements in IRC 1031 are met, and owns the land; a bondholder has none of these. For a high-bracket investor who owns the building, one year of after-tax income from the real estate can exceed the after-tax coupon, although a later taxable sale at a gain may trigger tax on prior depreciation, and the comparison holds only where Walmart Inc. signs or guarantees the lease. This is general information, not tax advice.
Which is easier to buy in a 1031 exchange?
Based on current availability in the listings we track, Walmart: they show 6 active Walmart listings and 1 active Costco listings. That is a snapshot of current offers, not a measure of how often either tenant’s properties trade. Separately, Costco owned the land and building at 536 of its 647 U.S. and Puerto Rico warehouses at August 30, 2026 (Form 10-K for fiscal 2026). Replacement property must be identified within 45 days of the transfer (IRC 1031(a)(3)(A)), so a buyer targeting Costco should start sourcing early.
