Market Data
water_dropCapital Markets

NNN Debt Availability
& Lender Appetite

Who's lending on NNN deals today, how much capital is available, and what it takes to get approved across five primary debt channels.

NNN median ask
0.00%
Boulder Group, Q2 2026
10Y Treasury
4.98%
FRED DGS10
Fed Funds Rate
3.88%
FRED DFF
NNN Cap Rate
6.82%
Boulder Group, Q2 2026
Data as of Q2 2026 · Sources: Federal Reserve (FRED), MBA, CoStar, CBRE Research

Who's Lending? Market Share by Source

Click a segment to explore each lender type. Five capital channels compete for NNN deal flow - each with distinct advantages, terms, and target borrower profiles.

100%NNN Debt Market
account_balance
Commercial Banks
28% market share · 6.5–7.2%
Stableexpand_more
Rate Range
6.5–7.2%
LTV Range
70–75%
DSCR
1.20x–1.35x
Timeline
30–45 days
Appetite
7/10
Best For
Stabilized NNN with IG tenants, relationship borrowers
Regional and national banks remain the largest NNN lender category. Post-SVB, balance sheets have consolidated - fewer banks but deeper appetite per institution. Relationship matters enormously: repeat borrowers access 25–50 bps better pricing. Banks favor 5–7 year fixed terms with recourse on smaller deals (<$5M) and non-recourse above $10M. Pre-pandemic, banks competed aggressively on rate; today they compete on certainty of execution and speed.
shield
Life Insurance / Pension
24% market share · 6.0–6.8%
Growingexpand_more
Rate Range
6.0–6.8%
LTV Range
60–65%
DSCR
1.30x–1.50x
Timeline
60–90 days
Appetite
8/10
Best For
Long-term, investment-grade, institutional-quality assets
Insurance companies and pension funds provide the most favorable long-term rates for institutional NNN - often 30–50 bps below bank pricing. They target 10–15 year fixed terms matching their liability duration. MetLife, Prudential, TIAA, and Northwestern Mutual are the largest NNN lenders. Underwriting is conservative: 60–65% LTV, 1.30x+ DSCR, and strong sponsorship requirements. The trade-off is speed - 60–90 day timelines and extensive documentation. Best for portfolio acquisitions and long-hold strategies.
stacked_bar_chart
CMBS Conduit
22% market share · 6.8–7.5%
Stableexpand_more
Rate Range
6.8–7.5%
LTV Range
68–72%
DSCR
1.25x–1.40x
Timeline
60–90 days
Appetite
6/10
Best For
Non-recourse, higher leverage, single-asset securitization
CMBS lenders securitize NNN loans into bond tranches sold to investors. Key advantage: non-recourse from day one with higher leverage than insurance (up to 72% LTV). Rates carry a premium (20–50 bps above insurance) reflecting securitization costs. CMBS issuance hit $158B in 2025 - the highest since 2007 (per SEC data) - with SASB deals accounting for ~75% of volume. B-piece buyers (risk retention) are becoming more selective, pushing underwriting tighter on secondary market assets. Best for borrowers who need leverage and non-recourse without bank relationships.
assured_workload
Agency (Fannie/Freddie)
16% market share · 6.0–6.5%
Shrinkingexpand_more
Rate Range
6.0–6.5%
LTV Range
60–65%
DSCR
1.35x–1.50x
Timeline
45–75 days
Appetite
5/10
Best For
Government-backed deals, lowest rates, strict standards
Agency lenders (Fannie Mae, Freddie Mac) offer the lowest rates in the market but with the strictest qualification criteria. Originally focused on multifamily, agency programs have expanded to cover select single-tenant commercial (medical office, essential retail). LTV limits are conservative (60–65%) with high DSCR floors (1.35x+). The advantage is guaranteed execution and rate locks up to 180 days. Agency appetite for NNN has softened in 2025–2026 as programs refocus on affordable housing mandates. Best for medical office, pharmacy, and government-tenanted NNN.
bolt
Debt Funds / Bridge
10% market share · 8.0–10.5%
Growingexpand_more
Rate Range
8.0–10.5%
LTV Range
65–80%
DSCR
1.10x–1.25x
Timeline
14–30 days
Appetite
9/10
Best For
Speed, bridge loans, value-add, transitional assets
Private debt funds (Blackstone Mortgage, Ares, Starwood, Mesa West) fill the gap banks won't touch: transitional assets, short lease terms, and borrowers who need speed. Rates are highest in the market (8–10.5%) but execution is fastest (2–4 weeks). These lenders have grown from 5% to 10%+ market share since 2020 as banks pulled back. They offer flexible structures: interest-only, mezzanine, preferred equity, and A/B note splits. Best for acquisition bridge loans (12–36 month terms) before permanent financing or value-add NNN repositioning strategies.

NNN Lending Volume: 2019 – 2025

Estimated NNN lending volume by capital source (MBA Quarterly Survey, CBRE). Volume crashed in 2020 (COVID) and 2023 (rate shock). 2025 saw a major recovery - total CRE originations up 40% per MBA, with CMBS hitting $158B (highest since 2007).

$0B$50B$100B$150B$200B$148B2019$89B2020$186B2021$152B2022$98B2023$130B2024$182B2025
Banks
Insurance
CMBS
Agency
Debt Funds

Market Intelligence

Where Is Lender Appetite Strongest?

Insurance companies and debt funds are showing the strongest appetite gains heading into 2026. Insurance lenders are actively seeking long-term NNN exposure to match rising liability durations, targeting 10–15 year fixed terms on investment-grade tenanted properties - life insurers gained 23% in origination volume in 2025 (per MBA). Debt funds have grown from 5% to 10%+ of the market since 2020, with investor-driven lenders up 59% in 2025. Banks remain the largest lender category at ~38% share (per MBA 2024 rankings) and surged 74% in Q4 2025, though they prioritize existing relationships. Agency appetite (Fannie/Freddie) has softened - agency-backed share fell from 50%+ in 2023 to 26% of CMBS volume. Total CMBS issuance reached $158B in 2025, the highest since 2007 (per SEC/Numerix data).

The NNN Loan Process

From first call to funding - what to expect when financing a NNN acquisition.

search
Step 1
Pre-Qualification & Lender Selection
Share property details (tenant, lease term, NOI, location) with 3-5 lenders. Get indicative term sheets within 1-2 weeks. Compare rates, leverage, and structure - not just rate alone.
description
Step 2
Term Sheet & Application
Accept best term sheet and submit full application package: rent roll, lease abstract, property financials (T-12), borrower financial statement, entity documents. Lender issues commitment letter.
fact_check
Step 3
Underwriting & Due Diligence
Lender orders appraisal, ESA Phase I, property condition report, title/survey. Underwriting reviews tenant credit, lease analysis, market comps, and stress tests on rate sensitivity. 2-4 weeks.
gavel
Step 4
Loan Committee & Approval
Loan package goes to credit committee for formal approval. Conditions may include: additional reserves, lease modifications, or insurance requirements. Approval typically 1-2 weeks after submission.
handshake
Step 5
Legal Review & Closing
Loan documents drafted by lender counsel. Borrower's attorney reviews. Title insurance, flood certificates, and insurance certificates gathered. Wire funds and record deed of trust. 1-2 weeks.
payments
Step 6
Funding & Servicing
Loan funds. Monthly debt service begins. Most NNN loans are serviced by third parties (CMBS) or in-house (bank/insurance). Set up autopay and maintain insurance/tax escrow compliance.

Key Takeaways

water_dropThe published net lease cap rate is 6.82% (Boulder Group, Q2 2026). Compare it with the 10-year Treasury in the ticker. The difference is a calculation, not a quoted loan rate.
shieldInsurance/pension capital is growing fastest - offering the best long-term rates (6.0–6.8%) for institutional-quality assets with 10–15 year fixed terms.
boltDebt funds have doubled market share since 2020 (5% to 10%+), with investor-driven lenders up 59% in 2025 (MBA). They provide critical bridge capital with 2–4 week execution.
trending_upCRE lending surged 40% in 2025 per MBA. The maturity wall peaks at ~$950B in 2027 (S&P Global), forcing refinancings and creating both stress and acquisition opportunity.
groupsRelationship borrowers access 25–50 bps better pricing than new entrants. Cultivating 2–3 primary lending relationships is essential for portfolio investors.

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Related Resources

account_balanceNNN Lending EnvironmentpercentLTV & Underwriting Trendsstacked_bar_chartCMBS Market OverviewwarningMaturity Wall & Refi RiskmonitoringFed Policy & Interest RatesleaderboardYield Benchmarks

DISCLAIMER: Lending data, market share estimates, and rate ranges are for informational purposes only and reflect approximate market conditions based on industry surveys (MBA, CBRE, CoStar) and public filings. Actual loan terms depend on borrower qualifications, property specifics, tenant credit, and market conditions at time of origination. Lender appetite and underwriting standards change frequently. This content does not constitute financial advice or a commitment to lend. Consult with qualified mortgage professionals and financial advisors before making financing decisions.

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