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Builders FirstSource NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

Last Year Cap

6.3%

This Year Cap

6.1%

Cap Change

-0.1%

Last Year Rating

BB

This Year Rating

BB

Rating Change

No change

Builders FirstSource – NNN Cap Rate Trend

Cap Rate Trends

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Tenant Year Cap Rate
5779 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,020 6.5
5780 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,021 6.3
5781 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,022 6.0
5782 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,023 6.3
5783 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,024 6.6
5784 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,025 6.6
Tenant Year Cap Rate
1031 Exchange
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Credit (what net-lease buyers care about)

Credit Snapshot

Builders FirstSource

Cap Rates NNN
Last Year 6.3%
This Year 6.1%
Change -0.1%
S&P Rating CREDIT
Last Year BB
This Year BB
Change No change

Builders FirstSource Net Lease: Secure, Essential Investment

Builders FirstSource is the largest supplier of structural building products, value-added components, and construction services for residential builders in the United States. As a publicly traded company (NYSE: BLDR), it serves professional homebuilders, remodelers, and contractors through an extensive nationwide network of manufacturing facilities and distribution locations.

Investors often target Builders FirstSource assets for:

  • Essential Building Materials Business
  • Strategic Industrial Distribution Locations
  • Publicly Traded National Tenant
  • Attractive 1031 Exchange Compatibility

Builders FirstSource Ground Lease Properties require careful comparison of rent escalations, remaining lease term, renewal options, landlord responsibilities, and residual land value versus fee simple ownership.

Builders FirstSource Ground Lease Properties for 1031 Exchange Buyers

Builders FirstSource Ground Lease Properties often trade differently than fee simple industrial assets. Buyers should carefully evaluate the lease structure, remaining lease term, renewal options, expense responsibilities, building ownership, and reversion rights to understand long-term investment risk and return.

Builders FirstSource – Credit Trend (S&P vs Moody’s)

Tenant_Rating_Trend

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank
1 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2022 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
2 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2023 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
3 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2024 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
4 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2025 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
5 admin2 2025 03:43 PM admin2 2025 03:43 PM 99centsonlystoresllc 99 Cents Only Stores, LLC 2022 Caa2 CCC+ Substantial Risk Substantial Risk 2 2
TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank

Builders FirstSource Stock Price (NYSE: BLDR)

BLDR stock price by TradingView

Builders FirstSource Investment Market Statistics

AVERAGE SALE PRICE

$6,800,000

BUILDING SIZE

30,000 – 70,000 SF

AVERAGE NOI

$430,000

LAND

3.0 – 8.0 acres

$/SF RANGE

$120 – $185

LEASE TERM SHOWN

15 years

Builders FirstSource Investor Snapshot (Quick Facts)

Origins & Growth (Past)

• Founded in 1998 through the merger of BMC West and BFS Holding
• Expanded nationwide through strategic acquisitions
• Became the largest U.S. building materials supplier
• Built extensive manufacturing and distribution network
• Expanded value-added manufacturing capabilities
• Leading supplier to residential homebuilders

 

Where Builders FirstSource Stands Today

• Extensive U.S. distribution network
• Largest building materials supplier
• Nationwide manufacturing footprint
• Serving professional homebuilders
• Expanding value-added services
• Focus on operational efficiency

Where Builders FirstSource Stands Today

• Increased manufacturing automation
• Expanded value-added products
• Continued acquisition-driven growth
• Strong builder relationships
• Optimized distribution network
• Focus on operational efficiency
• Benefiting from residential construction demand

 
 
 

Why investors buy Builders FirstSource NNN Properties or Builders FirstSource ground Lease Properties?

Pros (what buyers like)

  • Industry Leader
    Largest U.S. supplier of building materials with a strong market position.
  • Essential Construction Business
    Serves professional homebuilders, remodelers, and contractors.
  • Strategic Industrial Locations
    Distribution and manufacturing facilities in key construction markets.
  • Attractive Lease Structures
    Long-term NNN or ground leases appeal to passive and 1031 exchange buyers.

Cons (what can bite you)

  • Construction Market Exposure
    Performance is tied to housing starts and residential construction activity.
  • Lease Structure Variability
    Some assets are NN or modified NNN with landlord responsibilities.
  • Industrial Re-Tenanting Risk
    Specialized distribution facilities may require tenant improvements for new users.
  • Limited Rent Growth
    Some leases include fixed or modest rental escalations.

Find out more

Builders FirstSource NNN Properties, Builders FirstSource Ground Lease Properties, Builders FirstSource Net Lease, Builders FirstSource for Sale, Builders FirstSource Cap Rate, Builders FirstSource Lease Terms, Builders FirstSource Real Estate, Builders FirstSource 1031 Exchange, Builders FirstSource Investment Properties, NNN Properties, Ground Lease Properties, Industrial Net Lease, Commercial Real Estate, Single Tenant Net Lease

Builders FirstSource Background & History

Builders FirstSource is the largest supplier of structural building products, prefabricated components, and value-added construction services for residential builders in the United States. Formed in 1998 and significantly expanded through acquisitions—including the merger with BMC in 2021—the company has built a nationwide network of manufacturing facilities, distribution centers, and lumber yards serving professional homebuilders, remodelers, and contractors.

Today, Builders FirstSource combines manufacturing, distribution, and installation services with digital tools that help streamline the homebuilding process. The company continues to invest in automation, operational efficiency, and value-added products to strengthen its position in the residential construction supply chain.

Why Builders FirstSource Matters to NNN Investors

Builders FirstSource operates one of the largest building materials distribution networks in the United States. Its facilities support essential residential construction activity and are strategically located near growing housing markets and major transportation corridors.

Many locations serve as critical regional distribution hubs with specialized manufacturing capabilities and contractor-focused operations. As a publicly traded company, Builders FirstSource has established itself as a leading supplier to professional builders, making well-located facilities attractive to long-term net lease investors.

What Buyers and Sellers Should Evaluate

For investors evaluating Builders FirstSource NNN properties, a Builders FirstSource net lease, or a Builders FirstSource ground lease, the investment thesis is typically centered on the quality of the industrial real estate, lease structure, and the strategic importance of the facility within the company’s distribution network.

Common searches include Builders FirstSource real estate, Builders FirstSource cap rate, Builders FirstSource lease term, Builders FirstSource tenant credit, and Builders FirstSource industrial properties. Property values are largely driven by lease economics, remaining lease term, market rent, facility functionality, and location within key residential construction markets.

Because the business is tied to residential construction activity, buyers should also evaluate local housing demand, transportation access, market fundamentals, building specifications, expansion potential, and lease language defining landlord responsibilities. Strong logistics locations with modern facilities and durable cash flow generally command the greatest investor demand.

Corporate vs. Franchise | Store Count

Builders FirstSource operates under a fully corporate-owned model with no franchising. For NNN and ground lease investors, leases are typically backed directly by the corporate entity, providing a clear lease obligor and reducing tenant credit ambiguity. Builders FirstSource operates approximately 590+ locations across the United States, including distribution centres, manufacturing facilities, lumber yards, and component plants. For investors, tenant credit, lease structure, facility quality, and strategic market location typically have a greater impact on investment value than the total number of locations.

Builders FirstSource Financial Snapshot

Builders FirstSource is a publicly traded company (NYSE: BLDR) and generates billions of dollars in annual revenue through its nationwide building materials manufacturing and distribution business. The company maintains significant operating cash flow supported by the U.S. residential construction market. For net lease investors, Builders FirstSource's scale, market leadership, and operating performance are important factors when evaluating long-term lease reliability and income stability.

Builders FirstSource Lease Types

Most single-tenant Builders FirstSource properties are structured as long-term NNN or ground leases, although lease terms vary by property. Some assets may be NN or modified NNN, with limited landlord responsibilities for the roof or structure. Buyers should carefully review the lease language, expense responsibilities, rent escalations, and remaining lease term before underwriting and pricing the investment.

our team of experts are here for you

Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.

Whether you are comparing Builders FirstSource ground lease properties or fee simple Builders FirstSource assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.

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