The Boulder Group announced the release of its Second Quarter Net Lease Research Report today. The report features a comprehensive format with specific net lease sector information. According to The Boulder Group’s Q2 2026 Net Lease Research Report, overall single tenant net lease cap rates increased two basis points to 6.82% in the second quarter of 2026. Retail cap rates increased five basis points to 6.60% and industrial cap rates increased 10 basis points to 7.25%, while office cap rates remained unchanged at 7.90%.
“Overall single tenant net lease cap rates increased two basis points to 6.82% in Q2 2026, and the more significant development for the market is that the Federal Reserve not only held rates steady at both its April and June meetings but removed the single rate cut that had been projected for 2026,” says Randy Blankstein, President, The Boulder Group. “With projections now pointing toward a possible rate increase later this year, the net lease market is navigating a more restrictive rate environment than participants had anticipated at the start of 2026, yet transaction volume has remained steady, which reflects the durability of investor demand for single tenant net lease assets.”
The Boulder Group reported that single tenant net lease property supply increased 12.5% quarter-over-quarter in Q2 2026, reaching approximately 5,800 properties on the market. The retail sector accounted for the majority of that increase, with supply surging 16.2%, though The Boulder Group noted that high-quality net lease assets with investment-grade tenants and long-term leases represented less than 10% of overall retail supply even as the broader inventory expanded. Bid-ask spreads tightened for both retail and industrial assets in Q2 2026, with retail spreads narrowing one basis point to 22 basis points and industrial spreads compressing three basis points to 22 basis points, according to The Boulder Group’s Second Quarter Net Lease Research Report. The Federal Reserve held the federal funds rate steady at its target range of 3.50% to 3.75% at both its April and June meetings, and the Federal Open Market Committee removed the single rate cut previously projected for 2026 from its guidance. The 10-Year Treasury traded between 4.20% and 4.70% during the quarter before settling near 4.40%.
“Property supply in the single tenant net lease sector increased 12.5% in Q2 2026, reaching approximately 5,800 properties, but The Boulder Group’s research makes clear that the supply increase is concentrated almost entirely in non-credit retail product, with investment-grade assets representing less than 10% of retail inventory,” adds Jimmy Goodman, Partner, The Boulder Group. “Institutional buyers, 1031 exchange investors, and private capital are all competing for that limited pool of high-quality long-term net lease assets, which is why ground lease product for McDonald’s and Chick-fil-A is still asking 4.45% even as the broader market moves modestly higher.”
The Boulder Group’s Q2 2026 Net Lease Research Report highlights continued bifurcation across the single tenant net lease market. Premium long-term assets continued to attract competitive pricing across investor classes, with ground lease product for tenants such as McDonald’s and Chick-fil-A asking the lowest cap rates in the sector at 4.45%. Private capital and 1031 exchange buyers, who historically represent a significant share of transactions below $10 million, competed alongside institutional investors for high-quality net lease product, while shorter-term and non-rated assets moved more selectively at wider effective spreads. Across the five net lease sectors covered in The Boulder Group’s report, the auto sector remained unchanged at 6.45%, the dollar store sector increased two basis points to 7.49%, and the drug store sector held steady at 7.85%. In the quick service restaurant sector, corporate QSR cap rates increased three basis points to 5.85% while franchisee QSR cap rates increased five basis points to 6.85%.
“Retail bid-ask spreads tightened one basis point to 22 basis points in Q2 2026 and industrial spreads compressed three basis points to 22 basis points, according to The Boulder Group’s Second Quarter Net Lease Research Report, and those movements reflect continued alignment between buyer and seller pricing expectations despite the change in the Federal Reserve’s rate outlook,” John Feeney, Senior Vice President, The Boulder Group adds. “Investors are underwriting more carefully today, with greater scrutiny of tenant financials and store-level performance, but transactions are clearing on assets where the credit quality and lease structure support the pricing.”
The Boulder Group anticipates that net lease transaction volume will remain steady through the remainder of 2026, supported by continued investor demand for the asset class. The Federal Reserve’s removal of the expected 2026 rate cut from its projections, and the possibility of a rate increase later in the year, introduces additional uncertainty into the capital markets environment. The Boulder Group notes that traditional net lease sale volume may be supplemented by corporate tenants seeking to unlock capital through sale leaseback transactions ahead of potentially higher borrowing costs. It is important to note that net lease cap rates do not move in lockstep with interest rates, as property fundamentals, tenant credit quality, lease term, and investor demand all play significant roles in cap rate movement. Investors are expected to continue scrutinizing tenant financials and store-level performance carefully when underwriting net lease investment opportunities, according to The Boulder Group.
To view the full report: https://bouldergroup.com/media/pdf/2026-Q2-Net-Lease-Research-Report.pdf
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $11 billion of single tenant net lease real estate transactions. From 2013 to 2025, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both CoStar and MSCI Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago and has an office in Denver.
More info: www.bouldergroup.com
Media Contact
Company Name: The Boulder Group
Contact Person: Randy Blankstein
Email: Send Email
Phone: 8478816388
Address:3520 Lake Avenue Suite 203
City: Wilmette
State: Illinois
Country: United States
Website: https://www.bouldergroup.com/NNN-Properties-For-Sale.html
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To view the original version on ABNewswire visit: The Boulder Group Net Lease Report for Q2 2026
