NNN Tenant Credit
NNN Tenant Credit Ratings
Tenant credit is the single biggest driver of NNN cap rates. This table ranks the most active Florida single-tenant net lease brands by S&P and Moody's rating, separates corporate guarantees from franchisee guarantees, and flags where the lease structure matters. Ratings move — always re-verify the current agency rating at acquisition.
25
Tenants compared
12
Investment-grade tenants
A+
Strongest credit (Chase / JPM)
~250 bps
Cap-rate spread, IG vs. franchisee
Credit Tiers
Investment Grade
Rated BBB- or higher by S&P (or Baa3+ by Moody's). The deepest buyer pool and tightest cap rates — these tenants anchor most institutional and 1031 NNN portfolios.
Private — Strong
Privately held, so no public agency rating exists, but financial strength is treated as investment-grade-equivalent by the net-lease market. Verify lease guarantor and request financials in diligence.
Non-Investment Grade
Rated below BBB- (or BB+/lower). Wider cap rates compensate for credit risk. Often a value play — underwrite the specific store's sales and the lease term remaining carefully.
Franchisee-Dependent
Lease is typically guaranteed by a franchisee, not the corporate parent. Credit quality depends entirely on the individual operator — request franchisee financials and unit-level sales.
Investment Grade
(12)| Tenant | S&P | Moody's | Guarantee | Cap Rate | Lease | Credit Note |
|---|---|---|---|---|---|---|
| Chase Bank NYSE: JPM · Bank | A+ | Aa2 | Ground Lease / Corporate | 4.50% – 5.25% | Ground lease | Among the strongest credits in net lease. JPMorgan Chase corporate guarantee; most deals are ground leases where the bank owns the improvements. |
| Tractor Supply NASDAQ: TSCO · Rural Retail | A- | Baa1 | Corporate | 5.75% – 6.50% | Absolute NNN | Largest rural-lifestyle retailer in the US. Strong A- credit in a specialty category; rural/secondary Florida locations with reduced competition. |
| McDonald's NYSE: MCD · QSR | BBB+ | A2 | Ground Lease / Corporate | 4.75% – 5.50% | Ground lease | One of the strongest corporate credits in QSR. Confirm corporate (not franchisee) guarantee — most Florida ground leases are corporate-guaranteed. |
| Starbucks NASDAQ: SBUX · Coffee | BBB+ | A2 | Corporate | 4.75% – 5.50% | NNN | Investment-grade coffee credit with drive-thru focus. Some leases are NN (landlord roof/structure) — verify structure carefully. |
| Chipotle NYSE: CMG · QSR | BBB+ | Baa2 | Corporate | 5.00% – 5.75% | NNN / Ground lease | Corporate-owned (no franchisee risk). 'Chipotlane' drive-thru BTS program driving new Florida inventory. |
| CVS Pharmacy NYSE: CVS · Pharmacy | BBB | Baa2 | Corporate | 5.50% – 6.50% | Absolute NNN | Stronger credit than Walgreens; diversified parent (Aetna, MinuteClinic). Verify the specific location against announced closures. |
| Dollar General NYSE: DG · Dollar Store | BBB | Baa2 | Corporate | 5.75% – 6.50% | Absolute NNN | The most active BTS program in net lease and the classic first NNN asset. Counter-cyclical model; affordable entry price. |
| AutoZone NYSE: AZO · Auto Parts | BBB | Baa1 | Corporate | 5.25% – 6.00% | Absolute NNN | Recession-resistant, best-in-class operator. Some older leases have flat rent in the primary term — confirm escalations. |
| O'Reilly Auto Parts NASDAQ: ORLY · Auto Parts | BBB | Baa1 | Corporate | 5.25% – 6.00% | Absolute NNN | Second-largest auto parts chain; credit and cap rates track AutoZone closely. Shop both tenants. |
| Walgreens NASDAQ: WBA · Pharmacy | BBB- | Baa3 | Corporate | 6.00% – 7.00% | Absolute NNN | Downgraded to BBB- in 2024; cap rates widened accordingly. Long lease terms but verify the current rating and store performance at acquisition. |
| Dollar Tree NASDAQ: DLTR · Dollar Store | BBB- | — | Corporate | 5.50% – 6.25% | NNN | Investment-grade parent (Dollar Tree + Family Dollar). Freestanding NNN is rarer than Dollar General; verify the tenant entity given the Family Dollar review. |
| Fresenius Kidney Care NYSE: FMS · Medical | BBB- | — | Corporate | 6.00% – 7.00% | NNN | Lower-end investment grade. Sticky tenant — specialized dialysis build-out makes relocation expensive. Florida aging demographics support demand. |
4.50% – 5.25%
Ground Lease / Corporate · Ground lease
Among the strongest credits in net lease. JPMorgan Chase corporate guarantee; most deals are ground leases where the bank owns the improvements.
5.75% – 6.50%
Corporate · Absolute NNN
Largest rural-lifestyle retailer in the US. Strong A- credit in a specialty category; rural/secondary Florida locations with reduced competition.
4.75% – 5.50%
Ground Lease / Corporate · Ground lease
One of the strongest corporate credits in QSR. Confirm corporate (not franchisee) guarantee — most Florida ground leases are corporate-guaranteed.
4.75% – 5.50%
Corporate · NNN
Investment-grade coffee credit with drive-thru focus. Some leases are NN (landlord roof/structure) — verify structure carefully.
5.00% – 5.75%
Corporate · NNN / Ground lease
Corporate-owned (no franchisee risk). 'Chipotlane' drive-thru BTS program driving new Florida inventory.
5.50% – 6.50%
Corporate · Absolute NNN
Stronger credit than Walgreens; diversified parent (Aetna, MinuteClinic). Verify the specific location against announced closures.
5.75% – 6.50%
Corporate · Absolute NNN
The most active BTS program in net lease and the classic first NNN asset. Counter-cyclical model; affordable entry price.
5.25% – 6.00%
Corporate · Absolute NNN
Recession-resistant, best-in-class operator. Some older leases have flat rent in the primary term — confirm escalations.
5.25% – 6.00%
Corporate · Absolute NNN
Second-largest auto parts chain; credit and cap rates track AutoZone closely. Shop both tenants.
6.00% – 7.00%
Corporate · Absolute NNN
Downgraded to BBB- in 2024; cap rates widened accordingly. Long lease terms but verify the current rating and store performance at acquisition.
5.50% – 6.25%
Corporate · NNN
Investment-grade parent (Dollar Tree + Family Dollar). Freestanding NNN is rarer than Dollar General; verify the tenant entity given the Family Dollar review.
6.00% – 7.00%
Corporate · NNN
Lower-end investment grade. Sticky tenant — specialized dialysis build-out makes relocation expensive. Florida aging demographics support demand.
Private — Strong
(6)| Tenant | S&P | Moody's | Guarantee | Cap Rate | Lease | Credit Note |
|---|---|---|---|---|---|---|
| Chick-fil-A Private · QSR | — | — | Ground Lease / Corporate | 4.00% – 4.75% (ground lease) | Ground lease / Absolute NNN | Private, treated as investment-grade-equivalent. Highest per-store sales in QSR and the tightest cap rates in net lease. Corporate-operated (no franchisee risk). |
| Wawa Private · Convenience + Fuel | — | — | Private Corporate | 4.75% – 5.50% | Absolute NNN | Premium Florida convenience brand expanding aggressively. 20-year absolute NNN on 2+ acre pad sites; treated as very strong private credit. |
| Aldi Private · Grocery | — | — | Private Corporate | 5.25% – 6.00% | Absolute NNN | Fastest-growing US grocer, backed by Aldi Süd. Recession-resistant discount model; active Florida BTS pipeline. |
| 7-Eleven Private · Convenience + Fuel | — | — | Private Corporate | 5.00% – 5.75% | NNN | Largest US convenience chain, backed by Seven & i Holdings. Verify corporate vs. franchisee guarantee; Phase I ESA critical on fuel sites. |
| Panera Bread Private · Fast Casual | — | — | Private Corporate | 5.50% – 6.25% | NNN | Owned by JAB Holdings (deep private capital). Multi-daypart model; growing drive-thru format. Less public financial transparency. |
| Take 5 Oil Change Private · Auto Service | — | — | Private Corporate | 5.50% – 6.25% | Absolute NNN | Backed by public parent Driven Brands. Small-footprint, drive-thru-only format; fastest-growing quick-oil-change chain with active Florida BTS. |
4.00% – 4.75% (ground lease)
Ground Lease / Corporate · Ground lease / Absolute NNN
Private, treated as investment-grade-equivalent. Highest per-store sales in QSR and the tightest cap rates in net lease. Corporate-operated (no franchisee risk).
4.75% – 5.50%
Private Corporate · Absolute NNN
Premium Florida convenience brand expanding aggressively. 20-year absolute NNN on 2+ acre pad sites; treated as very strong private credit.
5.25% – 6.00%
Private Corporate · Absolute NNN
Fastest-growing US grocer, backed by Aldi Süd. Recession-resistant discount model; active Florida BTS pipeline.
5.00% – 5.75%
Private Corporate · NNN
Largest US convenience chain, backed by Seven & i Holdings. Verify corporate vs. franchisee guarantee; Phase I ESA critical on fuel sites.
5.50% – 6.25%
Private Corporate · NNN
Owned by JAB Holdings (deep private capital). Multi-daypart model; growing drive-thru format. Less public financial transparency.
5.50% – 6.25%
Private Corporate · Absolute NNN
Backed by public parent Driven Brands. Small-footprint, drive-thru-only format; fastest-growing quick-oil-change chain with active Florida BTS.
Non-Investment Grade
(5)| Tenant | S&P | Moody's | Guarantee | Cap Rate | Lease | Credit Note |
|---|---|---|---|---|---|---|
| Dutch Bros Coffee NYSE: BROS · Coffee | B | — | Corporate | 4.50% – 5.25% | Absolute NNN | Growth-stage credit (B) but tight cap rates priced for expansion. Corporate-operated; ultra-compact drive-thru prototype, actively expanding in Florida. |
| DaVita Dialysis NYSE: DVA · Medical | BB+ | Ba2 | Corporate | 6.00% – 6.75% | NNN | Just below investment grade but exceptionally sticky — specialized dialysis build-out and non-discretionary demand. Duopoly with Fresenius. |
| Wendy's NASDAQ: WEN · QSR | BB | — | Franchisee | 5.50% – 6.25% | NNN | Mostly franchisee-operated; corporate-guaranteed deals are rare and trade tighter. Verify the guarantor entity and operator credit. |
| Advance Auto Parts NYSE: AAP · Auto Parts | BB- | — | Corporate | 5.75% – 6.75% | NN (Double Net) | Downgraded to BB- in 2024. Wider cap rates create a value play, but most leases are NN — landlord retains roof/structure. Turnaround story to underwrite. |
| Wingstop NASDAQ: WING · QSR | B+ | — | Franchisee | 6.00% – 6.75% | NNN | Best-in-class unit economics but B+ corporate and 95%+ franchised. Franchisee credit analysis is essential; smaller footprint aids re-leasing. |
4.50% – 5.25%
Corporate · Absolute NNN
Growth-stage credit (B) but tight cap rates priced for expansion. Corporate-operated; ultra-compact drive-thru prototype, actively expanding in Florida.
6.00% – 6.75%
Corporate · NNN
Just below investment grade but exceptionally sticky — specialized dialysis build-out and non-discretionary demand. Duopoly with Fresenius.
5.50% – 6.25%
Franchisee · NNN
Mostly franchisee-operated; corporate-guaranteed deals are rare and trade tighter. Verify the guarantor entity and operator credit.
5.75% – 6.75%
Corporate · NN (Double Net)
Downgraded to BB- in 2024. Wider cap rates create a value play, but most leases are NN — landlord retains roof/structure. Turnaround story to underwrite.
6.00% – 6.75%
Franchisee · NNN
Best-in-class unit economics but B+ corporate and 95%+ franchised. Franchisee credit analysis is essential; smaller footprint aids re-leasing.
Franchisee-Dependent
(2)| Tenant | S&P | Moody's | Guarantee | Cap Rate | Lease | Credit Note |
|---|---|---|---|---|---|---|
| Taco Bell NYSE: YUM · QSR | BB+ | Ba2 | Franchisee | 5.25% – 6.00% | Absolute NNN | Yum! Brands parent rated BB+, but most US units are franchisee-operated. Corporate-guaranteed deals trade ~50 bps tighter than franchisee deals. |
| Popeyes NYSE: QSR · QSR | — | — | Franchisee | 5.50% – 6.75% | Absolute NNN | Restaurant Brands International parent, but leases are typically franchisee-guaranteed. Cap rate hinges on franchisee credit — request operator financials. |
5.25% – 6.00%
Franchisee · Absolute NNN
Yum! Brands parent rated BB+, but most US units are franchisee-operated. Corporate-guaranteed deals trade ~50 bps tighter than franchisee deals.
5.50% – 6.75%
Franchisee · Absolute NNN
Restaurant Brands International parent, but leases are typically franchisee-guaranteed. Cap rate hinges on franchisee credit — request operator financials.
How Credit Rating Drives Cap Rate
All else equal, a stronger tenant credit means a lower cap rate (higher price). An investment-grade tenant like Chase (S&P A+) or McDonald's (BBB+) trades 150–250 bps tighter than a franchisee-guaranteed QSR or a non-investment-grade tenant — because the income stream is more certain.
But the rating is only half the picture. A franchisee-guaranteed lease on a high-volume store with a strong operator can be a better risk than a corporate lease on a dying location. Always read the guarantor entityon the lease — "corporate guarantee" and "franchisee guarantee" are very different securities even under the same brand.
Lease structure compounds the effect: an absolute NNN or ground lease with zero landlord obligations trades tighter than an NN lease where the landlord still owns the roof and structure. Years of term remaining, rent escalations, and the specific store's sales all move the final number.
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Credit ratings shown reflect each tenant's most recent published S&P and Moody's ratings as referenced in our tenant profiles and are provided for general comparison only — they are not investment advice or a guarantee of credit quality. Agency ratings change; verify the current rating, the lease guarantor entity, and the specific store's performance during due diligence before acquiring any asset.