Comprehensive analysis of Q4 2025 net lease market conditions, including cap rate trends, transaction volume, and sector-by-sector investment activity across retail, restaurant, and office segments.
-
01
Net lease cap rates compressed 15 basis points in Q4 2025 as institutional capital rotated back into single-tenant assets amid declining interest rate expectations.
-
02
Retail net lease transaction volume surged 22% quarter-over-quarter, led by quick-service restaurants and auto-sector tenants generating outsized buyer demand.
-
03
Dollar store and pharmacy cap rates stabilized after 18 months of upward pressure, signaling renewed investor confidence in essential retail net lease assets.
-
04
Supply constraints for investment-grade properties under $5M continue driving capital toward secondary and tertiary markets, compressing spreads nationwide.
In-depth financial and operational profiles of the most active net lease tenants, providing investors with critical underwriting data including credit ratings, lease structures, and performance metrics.
-
01
Comprehensive Market Coverage Across 87 Tenants: The Boulder Group's Q1 2026 report profiles cap rate ranges and lease terms for 87 single-tenant net lease tenants spanning QSR, retail, healthcare, financial, and convenience sectors — offering investors a broad, current benchmarking tool.
-
02
Premium Tenants Command the Lowest Cap Rates: Investment-grade and high-demand tenants such as McDonald's (4.30%–4.60% on 15-year), Chick-fil-A (4.20%–4.50%), and Wawa (4.90%–5.20%) continue to trade at the tightest cap rates in the market, reflecting strong investor demand for credit quality and lease security.
-
03
Higher Yields Available in Dollar Stores, Casual Dining, and Apparel: Tenants including Walgreens (6.40%–9.00% depending on term), Dollar General (6.75%–8.50%), Family Dollar (7.80%–8.20%), and Kohl's (6.90%–7.20%) offer elevated cap rates, presenting opportunities for yield-focused investors willing to accept greater credit or operational risk.
-
04
Lease Structure Varies Significantly by Tenant Type: The majority of profiled tenants favor 15-year triple net or double net leases with 10% rent escalations every five years, while ground leases are prevalent among QSR and banking tenants — a distinction that meaningfully impacts landlord responsibilities, financing, and long-term asset valuation.
