Cap rates have moved. Debt is different. Here's how that affects your conversation with a capital partner.
The net lease market in Q2 2026 looks different than it did 18 months ago, and the difference matters for operators who are considering a sale-leaseback or who have had preliminary conversations that predate the current environment.
Here's our read on where the market is and what it means for the operators we work with.
Where cap rates are
Single-tenant NNN cap rates have compressed modestly from their 2023-2024 peaks in most categories. The rate environment has been the dominant driver — as the 10-year Treasury stabilized in the 4.25-4.50% range through Q1 2026, private NNN buyers found their underwriting thresholds and deal activity resumed in most property types.
Current cap rate ranges by category (Q2 2026):
- QSR and fast casual: 5.75-7.25% (A/B credit operators), 6.75-8.50% (C credit / single-unit operators)
- Healthcare / medical services: 5.50-6.75%
- Fitness and wellness: 6.50-8.00%
- Specialty retail: 6.25-8.25%
- Industrial / distribution: 5.00-6.75%
- Automotive services: 6.00-7.50%
These ranges reflect all-equity buyers and are before any financing premium or discount. Buyers who are leveraging acquisitions with debt will have higher return requirements, which pushes them toward higher cap rates or lower purchase prices for the same property.
What this means for operators: The cap rate you receive in 2026 is likely better than what was available in late 2023 and early 2024, when many buyers were sidelined by underwriting uncertainty. But it's not the 5.00-5.50% environment of 2020-2021. If your expectation is anchored to deals you heard about in that period, recalibrate.
The debt market and what it means for all-equity buyers
When commercial real estate debt is expensive, all-equity buyers become more competitive relative to leveraged buyers. Leveraged buyers need to clear a higher total return hurdle to account for their debt cost, which pushes them toward higher cap rates (lower prices). All-equity buyers underwrite to their own return threshold, which in the current environment allows them to be more competitive on pricing.
Haven is an all-equity buyer. We don't finance acquisitions with bank debt, which means our pricing isn't sensitive to the current debt market in the same way a CMBS-financed buyer is. For operators comparing offers, this distinction matters: an all-equity offer at a 6.75% cap that can close in 35 days is a different proposition than a debt-financed offer at a 6.50% cap that needs bank approval and 90 days.
What this means for operators: In the current environment, all-equity private buyers are often the most competitive alternative to institutional REIT buyers — and faster. If you're receiving offers from multiple buyers, compare the effective net proceeds (after deal costs and timing) as well as the headline cap rate.
REIT activity and what it signals
The publicly-traded net lease REITs — NNN Reit, Agree Realty, STORE's successor entities, and others — are active acquirers in 2026. REIT stock prices have recovered enough that their cost of capital makes acquisition activity accretive again in most categories.
REIT buyers are selective: they have category preferences, credit rating requirements, and portfolio concentration limits that shape where they compete aggressively. For operators in categories that REITs actively pursue (QSR with national franchise affiliation, healthcare, dollar stores), REIT interest can be a valuation benchmark. For operators in categories that REITs underweight (fitness, specialty retail, automotive), private buyers like Haven are typically the primary market.
What this means for operators: If your franchise brand or business category attracts REIT attention, understanding who's active in your category gives you leverage. If your category is underweight for REITs, private all-equity buyers are likely to give you the most competitive and fastest execution.
Labor and construction cost environment
Operators in active development or planning a build-to-suit face a different cost environment in 2026 than they did in 2021-2022. Construction costs have stabilized after the sharp increases of the supply chain disruption period, but they haven't returned to pre-2021 levels.
Current per-square-foot ranges for commercial build-to-suit by category:
- QSR / fast casual: $225-$325 per square foot (full build)
- Fitness / wellness: $150-$225 per square foot (depending on build-out intensity)
- Healthcare / medical services: $250-$400 per square foot
- Specialty retail: $125-$200 per square foot
These ranges are total project cost including soft costs and FF&E. Regional cost differentials apply — high-labor markets (coastal metros, some Midwest tier-1 cities) run 15-25% above national midpoint.
What this means for operators: The cost basis on a new build directly affects the SLB economics. A building that costs $280/sq ft to construct and trades at a 6.75% cap produces different returns than one that costs $200/sq ft at the same cap. Build cost discipline is not just a construction management issue — it's a capital markets issue.
Our read going into Q3
The environment for operators considering a sale-leaseback in Q2-Q3 2026 is favorable but not historic. Cap rates are stable, not compressing rapidly. All-equity buyers are competitive relative to the debt-financed market. REIT activity is providing a valuation floor in most credit categories.
The operators who execute well in this environment are the ones who come in with clean financial packages, understand their rent coverage math, and move quickly when the conversation is productive. The environment rewards preparation more than timing.
Trying to understand what your real estate is worth in today's market? We run preliminary valuations for operators who want to understand the range before they decide to pursue a formal process. No obligation, no fee — just an honest read on the numbers.