Net Lease Research | Boulder Group

Quarterly Market Report - National

Q3 2026 National Net Lease Report

October 2026

Comprehensive analysis of Q3 2026 net lease market conditions, including cap rate trends, property supply, bid-ask spreads, the impact of the Federal Reserve’s September rate increase, and sector-by-sector pricing across retail, office, and industrial segments.

Executive Summary

01 Net Lease Cap Rates Post Largest Increase Since 2023: Overall single tenant net lease cap rates increased 10 basis points to 6.92% in Q3 2026, the highest level in over a decade, according to The Boulder Group’s Third Quarter Net Lease Research Report.
02 Bid-Ask Spreads Widen as Net Lease Supply Levels Off: Bid-ask spreads for single tenant net lease retail and industrial assets widened three basis points to 25 basis points in Q3 2026, while supply edged down 0.7% to 5,754 properties, The Boulder Group reported.
03 Borrowing Costs Now Exceed Most Net Lease Cap Rates: Permanent financing costs generally exceed single tenant net lease cap rates in most instances, driving a flight to credit quality, according to The Boulder Group.
04 Fed Rate Hike May Reshape Fourth Quarter Net Lease Volume: Following the Federal Reserve’s September increase to a 3.75% to 4.00% target range, further rate hikes may alter the fourth quarter net lease transaction volume typically driven by year-end fund allocations, according to The Boulder Group.

Tenant Analysis - 80+ Profiles

Net Lease Tenant Profiles

September 2026

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.

Executive Summary

01 Comprehensive Market Coverage Across 88 Tenants: The Boulder Group's Q3 2026 report profiles cap rate ranges and lease terms for 88 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 (4.35% - 4.65% on 15-year), Chick-fil-A (4.15% - 4.45%), and 7-Eleven (4.80% - 5.15%) 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 (7.90% - 8.90%), and Kohl's (6.90% - 8.40%) 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.