Single-tenant net lease pricing continued to adjust in the second quarter of 2026, with overall cap rates moving modestly higher, according to new research from The Boulder Group. The firm reported that average cap rates for single-tenant net lease properties increased by two basis points during the period, reaching 6.82%.
Performance varied by property type. Retail net lease properties recorded a five-basis-point rise in average cap rates to 6.60%. Industrial assets saw a larger shift, with cap rates increasing by 10 basis points to an average of 7.25%. In contrast, office net lease cap rates were unchanged in the second quarter, holding at 7.90%.
The Boulder Group linked the changing rate environment to evolving investor expectations. Randy Blankstein, president of The Boulder Group, noted that the Federal Reserve’s decision to remove the anticipated 2026 rate cut from its projections, and the possibility of a rate increase later in the year, is altering how net lease investors underwrite opportunities in the second half of 2026. He added that, despite this shift, transaction volume in the sector has remained steady and that the fundamental investment case for single-tenant net lease assets has not materially changed.
Looking ahead, The Boulder Group expects overall net lease transaction volume to remain relatively consistent through the balance of 2026. The firm sees continued investor demand providing support for liquidity in the sector, even as the cost of capital outlook becomes less certain. The report also suggests that traditional net lease sale activity could be supplemented by additional corporate sale-leaseback transactions as occupiers look to unlock capital from owned real estate.
In particular, corporate tenants may increasingly use sale-leaseback structures as a way to raise funds prior to any potential increase in borrowing costs. This dynamic could add incremental supply of net lease product to the market while allowing occupiers to retain operational control of their facilities under long-term leases.
The report highlighted one recent example in the Bronx, where the headquarters of Ponce Bank traded in June at a 6.11% cap rate. The transaction underscores ongoing investor interest in single-tenant bank and financial services properties, even as broader net lease cap rates trend slightly higher.
Overall, the findings indicate a market adjusting to a less accommodative interest rate outlook, but not experiencing a significant disruption in deal flow. Investors and lenders in the net lease space are contending with modest cap rate expansion while continuing to pursue assets that align with their yield and credit objectives.
