Net Lease Research | Boulder Group

Quarterly Market Report - National

Q2 2026 National Net Lease Report

July 2026

Comprehensive analysis of Q2 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 Rise Modestly in Q2 2026 as Supply Expands: Overall single tenant net lease cap rates increased two basis points to 6.82% in Q2 2026, according to The Boulder Group’s Second Quarter Net Lease Research Report, with retail cap rates rising five basis points to 6.60%, industrial increasing 10 basis points to 7.25%, and office cap rates holding unchanged at 7.90%.
02 Property Supply Climbs 12.5% Led by Non-Credit Retail Inventory: Single tenant net lease property supply increased 12.5% quarter-over-quarter to approximately 5,800 properties in Q2 2026, with retail supply surging 16.2%, though The Boulder Group reported that investment-grade assets with long-term leases represented less than 10% of retail supply, and bid-ask spreads tightened for both retail and industrial assets to 22 basis points each.
03 Premium Credit Assets Remain Scarce and Competitively Priced: The net lease market remains bifurcated between high-quality investment-grade assets, where ground lease product for McDonald’s and Chick-fil-A is asking 4.45% and attracting competition across institutional, 1031 exchange, and private capital buyers, and shorter-term or non-rated assets, which are moving more selectively at wider effective spreads, according to The Boulder Group.
04 Fed Rate Outlook Shifts as Sale Leaseback Activity May Increase: The Federal Reserve removed the single rate cut previously expected for 2026 from its projections after holding rates steady at both its April and June meetings, and The Boulder Group’s Q2 2026 Net Lease Research Report notes that traditional net lease sale volume may be supplemented by corporate tenants pursuing sale leaseback transactions ahead of potentially higher borrowing costs..

Tenant Analysis - 80+ Profiles

Net Lease Tenant Profiles

March 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 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.