Market Intelligence
Median asking cap rates by sector, credit tier, and geography
Data as of Q2 2026. Median asking cap rate for single-tenant net lease listings, The Boulder Group, Q2 2026. Asking, not closed.
Overall single-tenant net lease cap rates increased 2 bps to 6.82% in Q2 2026 (Boulder Group). Retail NNN up 5 bps to 6.60%. Industrial up 10 bps to 7.25% — the sharpest expansion as new supply absorbed. Office was unchanged at 7.90% with elevated vacancy. Investment-grade tenants within each sector trade tighter. Banking ground leases, top-tier QSR ground leases, and grocery and big-box leases price the tightest.
Investment-grade asking cap rates differ by sector, including banking, convenience and gas, auto parts, healthcare, dollar stores, and pharmacy. The spread between top-tier IG tenants and non-IG tenants reflects the market's aggressive risk pricing in a higher-rate environment. Credit quality commands a premium that widens when rates rise.
Primary markets (NYC, LA, Chicago, Boston) still command tighter cap rates on trophy NNN properties. Secondary markets (Raleigh, Nashville, Denver) trade wider than primary markets. Tertiary markets price wider still. Geographic arbitrage opportunities widened in 2026 as institutional capital concentrated in primary markets.
NNN cap rates were lower in 2021 at the market peak, then expanded in late 2022. The 2024 rate cuts briefly compressed cap rates before the 2025 inflation reversal pushed them back up. Current 6.82% median asking cap rate is near the highest level since 2010. The spread to the 10-year Treasury is wider than the long-run norm, suggesting cap rates are fairly pricing the rate risk and may offer relative value for income-focused investors.
NNN cap rates peaked in 2021, expanded during the 2022-2023 hiking cycle, briefly compressed in 2024 as the Fed cut rates, then expanded again in 2025-2026 as inflation resurfaced. The current 6.82% median asking cap rate reflects a structurally higher rate environment — the Fed is holding with hawkish dissents, while inflation and the Treasury are elevated. The spread to Treasuries is wider than normal, suggesting NNN may offer relative value if rates stabilize. Transaction volume remains healthy in Q1 2026 as investors accept higher cap rates in exchange for stable income.
Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Figures may be estimated from publicly available sources and should be verified with primary data providers (CoStar, MSCI RCA, CBRE, FRED) before use in investment decisions. Past performance does not guarantee future results.