Net Lease Cap Rates: Single-Tenant NNN Property
Single-tenant net lease cap rates had a median asking rate of 6.92% in Q3 2026, the highest in over a decade. Retail, office and industrial NNN rates and what drives them.
By the CapRateCalculator.co team
Single-tenant net lease cap rates had a median asking rate of 6.92% in the third quarter of 2026, according to the Boulder Group’s net lease report. That was up 10 basis points from the prior quarter, the second straight increase, and the highest level in more than a decade. Retail net lease was 6.69%, industrial 7.28% and office 8.00%.
Net lease cap rates by sector
| Sector | Median asking cap rate, Q3 2026 |
|---|---|
| All single-tenant net lease | 6.92% |
| Retail | 6.69% |
| Industrial | 7.28% |
| Office | 8.00% |
Source: The Boulder Group. These are asking rates from listings. Boulder puts the gap between asking and closed cap rates at 25 to 50 basis points, so sales are closing higher than these figures.
How net lease NOI works
In a triple net (NNN) lease the tenant pays the property taxes, insurance and maintenance on top of rent. The landlord’s NOI is close to the rent itself, minus any costs the lease leaves with the owner, like roof and structure under some leases. That simplicity is why net lease investors talk about the cap rate almost as a bond yield.
Value at net lease cap rates
| Cap rate | Value of $150,000 annual rent |
|---|---|
| 6.69% (retail) | $2,242,000 |
| 7.28% (industrial) | $2,060,000 |
| 8.00% (office) | $1,875,000 |
What moves a net lease cap rate
Tenant credit. An investment-grade national tenant trades at a much lower cap rate than a local operator. The lease is only as good as the company behind it.
Lease term remaining. Ten or more years left on a lease prices lower than three. Near expiration, the building’s value depends on re-leasing it.
Rent increases. Leases with regular rent bumps trade lower than flat leases, because income grows.
Interest rates. With the tenant’s credit doing most of the work, net lease prices move closely with Treasury yields. The cap rate and interest rate guide explains the link.
Lease type. A ground lease, where the tenant owns the building, trades lower still. See the ground lease cap rates guide.
Cap rates by property type compares net lease with multi-tenant property.
Frequently asked questions
What is the average NNN cap rate?
The Boulder Group's third-quarter 2026 report put the median asking cap rate for single-tenant net lease property at 6.92%, up 10 basis points from the prior quarter. By sector, retail was 6.69%, industrial 7.28% and office 8.00%.
Are NNN cap rates going up?
Yes, as of the third quarter of 2026. Boulder reported a second straight quarterly rise to the highest level in over a decade, as Treasury yields climbed above 5%. Net lease prices track bond yields closely because the income behaves like a bond coupon.
Is the asking cap rate the same as the sale cap rate?
No. Asking cap rates come from listings. Boulder notes a gap of 25 to 50 basis points between asking and closed cap rates, so actual deals have been closing at higher cap rates than the listings show.