account_balanceMarket Intelligence

Current NNN
Lending Environment

Real-time financing conditions, bank appetite, and debt structuring strategies for single-tenant net lease investors.

Avg NNN Loan Rate

0.00%

10Y Treasury + ~200bps spread

5-Year Fixed

5.57%

Rate Environment at a Glance

Where current NNN financing rates sit relative to historical ranges. Lower is better for borrowers.

Avg NNN Loan Rate

6.02%

3%9%

5-Year Fixed

5.57%

3%9%

10-Year Fixed

6.17%

3%9%

SOFR (Floating Base)

3.64%

0%6%

LTV by Property Type

Maximum loan-to-value ratios vary significantly by tenant credit quality and property sector. Grocery and pharmacy achieve the highest leverage.

Key Insight

Average NNN LTV has compressed from 72% (2021) to 68% (2026). Lenders now demand 25-30% equity cushions, up from historical 20-25% standards.

Grocery-Anchored NNN72%

Pharmacy (Walgreens, CVS)70%

Investment-Grade Retail68%

QSR (Chick-fil-A, etc.)66%

Convenience / Gas65%

Experiential Retail62%

Secondary Market / Short Lease58%

What This Means for NNN Investors

Bank Lending Stabilizes After 2023 Volatility

Following the 2023 regional bank crisis (SVB, Signature Bank), NNN lending has stabilized with 42 active originators competing for seasoned portfolio business. Rates have settled in the 6.15-6.40% range for investment-grade credit with 5-10 year fixed terms. Balance sheet consolidation at major banks (JPMorgan, Wells Fargo) means fewer lenders but increased appetite for institutional NNN volume. Relationship banking dynamics favor repeat customers; new market entrants face 50-75 bp pricing premiums.

Underwriting by Credit Tier

How lenders price risk across tenant credit quality — from investment-grade to non-rated.

AAA-Rated

DSCR Min

1.20x

Max LTV

65%

Rate Range

6.0–6.3%

Reserves

6 mo

A-Rated

DSCR Min

1.25x

Max LTV

62%

Rate Range

6.2–6.5%

Reserves

9 mo

BBB-Rated

DSCR Min

1.40x

Max LTV

55%

Rate Range

6.5–7.0%

Reserves

12 mo

Non-Investment Grade

DSCR Min

1.55x+

Max LTV

45–50%

Rate Range

7.0–8.0%

Reserves

18 mo

Key Takeaways

trending_downNNN loan rates averaging 6.02% for 5-year terms; 10-year fixed available at 6.17% for quality assets

percentLTV compression to 68% average; grocery/pharmacy access 70-72%, QSR capped at 65-68%

rule_folderDSCR requirements rising to 1.15-1.25x driven by refinancing risk; floating-rate offers 50-75 bp concession

groups42 active NNN lenders; relationship banking favored — new entrants pay 50-75 bp premiums

calendar_month2026-2027 maturity wave creating urgency; portfolio refi strategies mitigate laddered risk

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NNN Lending Through the Cycles

How financing conditions have evolved across major market cycles.

2019

Pre-pandemic peak: NNN available at 3.5-4.5% with 72-75% LTV, minimal underwriting friction. 25+ lenders competing aggressively.

Mar 2020

Pandemic shock: Financing freezes temporarily. Rates spike to 8.5%+ with recourse requirements. Market activity drops 60%.

2021

Historic lows: Fed rate cuts push NNN financing to 3.0-3.5%. Record transaction volume. LTV back to 72%+.

2022-2023

Rate hiking cycle eliminates cheap financing. By Q2 2023, rates hit 7.5-8.0% creating acquisition freeze. SVB collapse adds volatility.

2024

Gradual normalization: Rates ease to 6.8-7.2%. Lender appetite returns slowly. LTV stabilizes at 65-68%.

2026 (Now)

Current 6.02% represents stabilization, still 2.5-3.5% above pre-pandemic norms. 42 active lenders. Maturity wall creating urgency.

Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Figures may be estimated from publicly available sources and should be verified with primary data providers (CoStar, MSCI RCA, CBRE, FRED) before use in investment decisions. Past performance does not guarantee future results.

Market Data

10Y Treasury4.02%—

Fed Funds3.64%—

NNN Avg Cap5.87%—

30Y Mortgage5.98%—

CMBS Spread224 bps—

NNN Spread185 bps—

account_balanceMarket Intelligence

Current NNN
Lending Environment

Real-time financing conditions, bank appetite, and debt structuring strategies for single-tenant net lease investors.

Avg NNN Loan Rate

0.00%

10Y Treasury + ~200bps spread

5-Year Fixed

5.57%

Rate Environment at a Glance

Where current NNN financing rates sit relative to historical ranges. Lower is better for borrowers.

Avg NNN Loan Rate

6.02%

3%9%

5-Year Fixed

5.57%

3%9%

10-Year Fixed

6.17%

3%9%

SOFR (Floating Base)

3.64%

0%6%

LTV by Property Type

Maximum loan-to-value ratios vary significantly by tenant credit quality and property sector. Grocery and pharmacy achieve the highest leverage.

Key Insight

Average NNN LTV has compressed from 72% (2021) to 68% (2026). Lenders now demand 25-30% equity cushions, up from historical 20-25% standards.

Grocery-Anchored NNN72%

Pharmacy (Walgreens, CVS)70%

Investment-Grade Retail68%

QSR (Chick-fil-A, etc.)66%

Convenience / Gas65%

Experiential Retail62%

Secondary Market / Short Lease58%

What This Means for NNN Investors

Bank Lending Stabilizes After 2023 Volatility

Underwriting by Credit Tier

How lenders price risk across tenant credit quality — from investment-grade to non-rated.

AAA-Rated

DSCR Min

1.20x

Max LTV

65%

Rate Range

6.0–6.3%

Reserves

6 mo

A-Rated

DSCR Min

1.25x

Max LTV

62%

Rate Range

6.2–6.5%

Reserves

9 mo

BBB-Rated

DSCR Min

1.40x

Max LTV

55%

Rate Range

6.5–7.0%

Reserves

12 mo

Non-Investment Grade

DSCR Min

1.55x+

Max LTV

45–50%

Rate Range

7.0–8.0%

Reserves

18 mo

Key Takeaways

trending_downNNN loan rates averaging 6.02% for 5-year terms; 10-year fixed available at 6.17% for quality assets

percentLTV compression to 68% average; grocery/pharmacy access 70-72%, QSR capped at 65-68%

rule_folderDSCR requirements rising to 1.15-1.25x driven by refinancing risk; floating-rate offers 50-75 bp concession

groups42 active NNN lenders; relationship banking favored — new entrants pay 50-75 bp premiums

calendar_month2026-2027 maturity wave creating urgency; portfolio refi strategies mitigate laddered risk

Stay Updated

Get daily lending conditions and market intelligence delivered to your inbox.

Subscribe Free

No spam. Unsubscribe anytime.

NNN Lending Through the Cycles

How financing conditions have evolved across major market cycles.

2019

Pre-pandemic peak: NNN available at 3.5-4.5% with 72-75% LTV, minimal underwriting friction. 25+ lenders competing aggressively.

Mar 2020

Pandemic shock: Financing freezes temporarily. Rates spike to 8.5%+ with recourse requirements. Market activity drops 60%.

2021

Historic lows: Fed rate cuts push NNN financing to 3.0-3.5%. Record transaction volume. LTV back to 72%+.

2022-2023

Rate hiking cycle eliminates cheap financing. By Q2 2023, rates hit 7.5-8.0% creating acquisition freeze. SVB collapse adds volatility.

2024

Gradual normalization: Rates ease to 6.8-7.2%. Lender appetite returns slowly. LTV stabilizes at 65-68%.

2026 (Now)

Current 6.02% represents stabilization, still 2.5-3.5% above pre-pandemic norms. 42 active lenders. Maturity wall creating urgency.

Related Resources

monitoringFed Policy & Interest Rates account_balanceLender Capacity & Appetite percentLTV & Underwriting Trends warningMaturity Wall & Refi Risk calculateDSCR Calculator paymentsLoan Payment Calculator

Current NNNLending Environment

Rate Environment at a Glance

LTV by Property Type

What This Means for NNN Investors

Bank Lending Stabilizes After 2023 Volatility

Underwriting by Credit Tier

Key Takeaways

Stay Updated

NNN Lending Through the Cycles

Related Resources

Current NNNLending Environment

Rate Environment at a Glance

LTV by Property Type

What This Means for NNN Investors

Bank Lending Stabilizes After 2023 Volatility

Underwriting by Credit Tier

Key Takeaways

Stay Updated

NNN Lending Through the Cycles

Related Resources

Current NNN
Lending Environment

Current NNN
Lending Environment