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Quarterly Market Report · National
Q1 2026 National Net Lease Report

Comprehensive analysis of Q1 2026 net lease market conditions, including cap rate trends, transaction volume, bid-ask spreads, and sector-by-sector investment activity across retail, office, and industrial segments.

Executive Summary
  • 01 Net Lease Cap Rates Decline in Q1 2026 as Office Leads Compression: Single tenant net lease cap rates decreased one basis point to 6.80% in Q1 2026, according to The Boulder Group's First Quarter Net Lease Research Report, with office cap rates compressing the most at 10 basis points to 7.90% and industrial declining five basis points to 7.15%.
  • 02 Property Supply Falls 9.8% as Transaction Activity Holds Steady: Single tenant net lease property supply declined 9.8% quarter-over-quarter in Q1 2026, driven by elevated transaction volume in Q4 2025 and continued deal activity in the first quarter, with retail bid-ask spreads narrowing to 23 basis points and industrial spreads tightening to 25 basis points, according to The Boulder Group.
  • 03 Market Bifurcation Favors Investment-Grade Credit Assets: The net lease market remains bifurcated between investment-grade credit assets with long lease terms, which continue to attract institutional buyers, 1031 exchange capital, and private investors, and shorter-term or non-rated assets, which face wider spreads and more selective buyer engagement, The Boulder Group reported.
  • 04 Net Lease Transaction Volume Expected to Remain Steady Through 2026: Net lease transaction volume is expected to remain steady in 2026 as buyer and seller pricing expectations continue to converge, though the path to further Federal Reserve rate cuts has narrowed to a single reduction anticipated for the year amid persistent inflation concerns, according to The Boulder Group's Q1 2026 Net Lease Research Report.
PDF - Q1 2026
Tenant Analysis - 80+ Profiles
Net Lease Tenant Profiles

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 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.
PDF - Q1 2026