FedEx NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
6.2%
This Year Cap
6.4%
Cap Change
0.2%
Last Year Rating
BBB
This Year Rating
BBB
Rating Change
No change
FedEx – 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 |
Credit (what net-lease buyers care about)
Credit Snapshot
FedEx
FedEx Net Lease: Secure, Essential Investment
FedEx Corporation is a globally recognized logistics and transportation company and a key tenant in the industrial net lease sector. This guide reviews cap rates, lease structures, tenant credit, and key due diligence considerations for buyers and sellers.
For 1031 exchange buyers, FedEx-leased industrial properties are important to compare across different operating entities (FedEx Ground, FedEx Express) and lease types, as structure can materially impact pricing, financing, and long-term resale value.
Investors often target FedEx assets for:
- Stable Income Potential
- Essential Logistics & E-commerce Demand
- Strong Brand & Operational Scale
- Attractive 1031 Exchange Compatibility
FedEx-leased properties require careful review of lease structure, as many are NN or modified NNN, where landlords may retain responsibility for roof, structure, or site components. This can materially impact long-term expenses and returns.
FedEx Net Lease Properties for 1031 Exchange Buyers
FedEx properties often trade differently than traditional retail net lease assets. Buyers should carefully evaluate lease structure, remaining lease term, renewal options, landlord responsibilities, and the specific FedEx operating entity on the lease to understand long-term risk and return.
FedEx – 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 |
FedEx Stock Price (NYSE:FDX)
FedEx Investment Market Statistics
AVERAGE SALE PRICE
BUILDING SIZE
AVERAGE NOI
LAND
$/SF RANGE
LEASE TERM SHOWN
FedEx Investor Snapshot (Quick Facts)
Origins & Growth (Past)
- Founded in 1971 as Federal Express by Frederick W. Smith
- Pioneered the overnight delivery model, transforming global logistics
- Introduced the hub-and-spoke distribution system, centered in Memphis
- Expanded rapidly across the U.S. and internationally through air and ground networks
- Launched FedEx Ground to compete in cost-efficient parcel delivery
- Acquired key logistics companies (including Kinko’s, later FedEx Office) to diversify services
- Invested heavily in technology, tracking systems, and supply chain solutions
- Became a global leader in express shipping, e-commerce logistics, and freight services
Where FedEx Corporation Stands Today
- Large U.S. and global logistics network
- Leader in express shipping and parcel delivery
- High daily shipment volume driven by e-commerce demand
- Integrated air, ground, and freight operating model
- Expanding last-mile delivery and fulfillment capabilities
- Growing technology, tracking, and automation systems
- Focus on cost efficiency, network optimization, and margins
Where FedEx Corporation Stands Today
- More automation
- E-commerce growth
- Network optimization
- Stronger margins focus
- Expanded last-mile delivery
- Advanced logistics technology
- Global shipping tailwinds
Why investors buy FedEx NNN Properties or FedEx ground Lease Properties?
Pros (what buyers like)
- FedEx brand strength
Globally recognized logistics operator with decades of operating history and a critical role in supply chains - Essential logistics demand
Parcel delivery is driven by e-commerce and business shipping, creating consistent, needs-based demand - Strategic industrial locations
Facilities are often located near highways, airports, and major distribution corridors - Long-term lease structures
Many assets feature long-term NN or NNN leases, appealing to passive and 1031 exchange investors - E-commerce tailwinds
Growth in online retail continues to support package volume and logistics infrastructure demand
Cons (what can bite you)
- Lease structure variability
Many FedEx leases are NN or modified NNN, with landlord responsibility for roof, structure, or site - Entity-level credit considerations
Leases may be signed by FedEx Ground contractors or subsidiaries, not always the parent entity - Specialized building design
Distribution facilities are often highly functional, which can limit re-tenanting flexibility - Lower rent growth
Annual rent escalations are often modest or tied to renewal options - Operational dependency
Asset value tied to logistics network importance—relocation or consolidation can impact long-term stability
Investor Decision Framework (Buy / Hold / Sell)
✓ Strong “Buy Box” for a FedEx Corporation Net Lease
• 10–15+ years lease term remaining (or strong renewal options) • NN or NNN lease with minimal landlord responsibilities (clear structure) • Investment-grade or strong-credit FedEx entity on the lease • Strategic logistics location (near highways, airports, or major distribution corridors) • Mission-critical facility within FedEx network (last-mile or regional hub) • Functional building design with good truck courts, clear height, and circulation • Rent is in line with market industrial rates (supports re-tenanting and resale)
02
⚠ Yellow Flags (Price Accordingly)
• NN or modified NNN lease with landlord responsibility for roof, structure, or site work • Flat rent with minimal or no escalations during the primary lease term • Lease signed by a non-investment-grade entity or contractor (not core FedEx entity) • Non-critical facility (secondary or relocatable within FedEx network) • Functional obsolescence (low clear height, poor truck court, limited loading) • Location outside major logistics corridors (limited access to highways or distribution routes) • Limited re-tenanting flexibility due to specialized industrial layout
Find out more
FedEx Background & History
FedEx Corporation is a global transportation and logistics company best known for its express shipping, ground delivery, and supply chain services. What began as an overnight air delivery business evolved into a fully integrated logistics network supporting time-sensitive shipments, e-commerce fulfillment, and global trade.
Over time, the company built a nationwide and international infrastructure of air hubs, ground distribution centers, and last-mile delivery operations. Today, businesses and consumers rely on FedEx for package delivery, freight services, and supply chain solutions that support both B2B and e-commerce activity.
As shipping demand shifted toward speed, reliability, and tracking visibility, FedEx adapted through network expansion, advanced logistics technology, and integrated service offerings that support high shipment volumes and time-definite delivery.
Why FedEx Matters to NNN Investors
Today, FedEx operates one of the largest logistics networks in the world, moving millions of packages daily. The business model is centered on consistent shipping demand, e-commerce growth, and mission-critical infrastructure located near major transportation corridors.
Many facilities are strategically positioned near highways, airports, and population centers, supporting efficient distribution and last-mile delivery. In addition, the company continues investing in automation, route optimization, and logistics technology to improve operational efficiency and margins.
This focus on essential logistics infrastructure helps explain why FedEx remains relevant even as supply chains evolve. Management continues to optimize its network, consolidate operations, and adapt to changing delivery patterns and consumer expectations.
What Buyers and Sellers Should Evaluate
For investors evaluating FedEx NNN properties, FedEx net lease assets, or FedEx ground-leased industrial facilities, the investment thesis is typically centered on location within the logistics network and lease structure rather than traditional retail visibility.
Common searches include FedEx real estate, FedEx cap rate, FedEx lease term, FedEx tenant credit, and FedEx Ground vs FedEx Express properties. Ultimately, FedEx net lease value is driven by facility functionality, lease economics, and the property’s role within the broader distribution network.
As logistics patterns continue to evolve, the strongest FedEx locations tend to be those that remain operationally critical within regional and last-mile delivery networks. Buyers and sellers should evaluate each property individually, including access to major transportation routes, truck circulation, loading capacity, building specifications (clear height, dock doors), and site size.
In addition, investors should consider lease structure (NN vs NNN), credit of the leasing entity, long-term re-tenanting potential, and how the asset may perform across different hold periods and exit strategies.
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 FedEx ground lease properties or fee simple FedEx 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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