Retail Cap Rate Survey - Q3 2017 Tenant
S&P
Assumptions
Low
High
Avg Deal Size (MM)
BBB+
10 yrs; NN; 5% in Year 6
6.01%
6.48%
< $5
AutoZone, Inc.
BBB
15 yrs; NNN; Flat
5.50%
5.93%
$1-2
Best Buy Co. Inc.
BBB-
10 yrs; NN; Flat
7.21%
7.74%
$7-9
B-
20 yrs; NNN; Flat
6.59%
6.99%
$16-20
N/R
20 yrs; NNN; Flat
6.24%
6.67%
$25-30
BBB+
25 yrs; NNN; Flat
5.15%
5.64%
$3-8
DaVita HealthCare Partners, Inc.
BB
15 yrs; NN; 10% every 5
5.64%
6.16%
$1-5
Dick's Sporting Goods, Inc.
N/R
10 yrs; NN; Flat
6.57%
6.98%
$10-11
AT&T Inc.
BJ's Wholesale Club, Inc. CarMax Auto Superstores, Inc. CVS Health Corp. (fmrly CVS Caremark Corp.)
Dollar General Corp.
BBB
15 yrs; NNN; Flat
6.36%
6.96%
< $3
Dollar Tree, Inc.
BB+
10 yrs; NN; Flat
6.51%
7.09%
< $3
FedEx Corp.
BBB
15 yrs; NN; Flat
5.86%
6.27%
$1-4
FedEx Ground Package Systems, Inc.
N/R
10 yrs; NN; Flat
6.07%
6.52%
$5-20
Fresenius Medical Care Holdings, Inc.
BBB-
15 yrs; NN; 2% annual
5.75%
6.21%
$2-5
N/R
15 yrs; NNN; 5% every 5
6.10%
6.51%
$5-10
Home Depot, Inc.
A
20 yrs; NNN; Flat
5.02%
5.44%
$15-25
JPMorgan Chase & Co.
A-
20 yrs; NNN; 10% every 5
4.49%
4.96%
$2-6
Kohl's Corp.
BBB-
20 yrs; NN; Flat
6.08%
6.57%
$10-20
Kroger Co.
BBB
20 yrs; NNN; Flat
5.29%
5.76%
$2-8*
LA Fitness International, Ltd.
N/R
15 yrs; NN; 10% every 5
6.20%
6.65%
$10-15
A-
20 yrs; NNN; Flat
5.11%
5.56%
$13-14
N/R
12 yrs; NN; 10% every 5
6.62%
7.16%
< $4
BBB+
20 yrs; NNN; 10% every 5
4.04%
4.54%
< $4
Michaels Companies, Inc.
BB-
10 yrs; NN; 5% every 5
6.85%
7.28%
$4-10*
National Tire and Battery
N/R
20 yrs; NNN; 12% every 5
5.68%
6.14%
$1-4
Northern Tool & Equipment
N/R
11 yrs; NN; 2% annual
6.70%
7.20%
$2-3
Office Depot, Inc.
N/R
10 yrs; NN; Flat
7.73%
8.29%
$2-3
BBB+
20 yrs; NN; Flat
5.54%
6.01%
< $3
PetSmart, Inc.
B+
10 yrs; NN; Flat
6.52%
7.01%
$3-7
QuikTrip Corp.
N/R
15 yrs; NNN; 25bps per Opt
5.49%
5.88%
$4-5
Rite Aid Corp.
B
20 yrs; NN; Flat
6.52%
7.00%
< $10
Sherwin-Williams Co.
A
15 yrs; NNN; 5% every 5
5.51%
6.01%
< $4
N/R
15 yrs; NN; $1/sf every 5
5.74%
6.22%
$10-20
BBB-
10 yrs; NNN; Flat
7.58%
8.08%
< $8
A
10 yrs; NN; Flat
4.99%
5.50%
$1-4
A+
10 yrs; NN; 5% every 5
6.04%
6.52%
$3-5
Tractor Supply Co.
N/R
15 yrs; NN; 5% every 5
5.97%
6.40%
$2-7
Walgreen Boots Alliance, Inc.
BBB
20 yrs; NNN; Flat
5.29%
5.85%
$3-12
Wal-Mart Stores, Inc.
AA
20 yrs; NNN; Flat
4.96%
5.45%
$10-20
Wawa, Inc.
N/R
20 yrs; NNN; 5% every 5
4.76%
5.23%
$3-5
BBB-
20 yrs; NNN; 10% every 5
4.87%
5.35%
$10-20
Hobby Lobby Stores, Inc.
Lowe's Cos. Inc. Mattress Firm Holding Corp. McDonald's Corp.
O'Reilly Automotive, Inc.
Sprouts Staples, Inc. Starbucks Corp. TJX Cos. Inc. (d/b/a TJMaxx, HomeGoods, Marshalls)
Whole Foods Market, Inc.
Source: Stan Johnson Company Research; sale price range included if there have been more than five priced single-tenant transactions reported in the last 12 months with 10+ years of lease term remaining
Craig Tomlinson, Senior Director, ctomlinson@stanjohnsonco.com John Zimmerman, Director, jzimmerman@stanjohnsonco.com P: 918-494-2690