Tel          : 202-361-3050
E:  info@nnndeals.com

Facebook Linkedin Instagram Youtube Blog
Menu
GET A QUOTE

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

Last Year Cap

5.9%

This Year Cap

5.8%

Cap Change

-0.1%

Last Year Rating

BBB+

This Year Rating

BBB+

Rating Change

No change

Ferguson – 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
See Active Listing
Get Off Market Deals

Credit (what net-lease buyers care about)

Credit Snapshot

Ferguson

Cap Rates NNN
Last Year 5.9%
This Year 5.8%
Change -0.1%
S&P Rating CREDIT
Last Year BBB+
This Year BBB+
Change No change

Ferguson Net Lease: Secure, Essential Investment

Ferguson is the largest value-added distributor of plumbing, HVAC, waterworks, and industrial products in North America. As a publicly traded company (NYSE: FERG), it serves professional contractors, commercial customers, municipalities, and industrial clients through a nationwide network of distribution branches.

For 1031 exchange buyers, Ferguson Ground Lease Properties should be compared with fee simple Ferguson assets, as lease structure can materially impact pricing, financing, long-term appreciation, and resale value.

Investors often target Ferguson assets for:

  • Essential Infrastructure Distribution Business
  • Strategic Industrial & Commercial Locations
  • Publicly Traded National Tenant
  • Attractive 1031 Exchange Compatibility

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

Ferguson Ground Lease Properties for 1031 Exchange Buyers

Ferguson Ground Lease Properties often trade differently than fee simple industrial and distribution 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.

Ferguson – 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

Ferguson Stock Price (NYSE: FERG)

FERG stock price by TradingView

Ferguson Investment Market Statistics

AVERAGE SALE PRICE

$7,500,000

BUILDING SIZE

30,000 – 80,000 SF

AVERAGE NOI

$495,000

LAND

3.0 – 8.0 acres

$/SF RANGE

$125 – $195

LEASE TERM SHOWN

15 years

Ferguson Investor Snapshot (Quick Facts)

Origins & Growth (Past)

  • Founded in 1953 as Ferguson Enterprises
  • Expanded through strategic acquisitions
  • Built nationwide distribution network
  • Grew across plumbing, HVAC, and waterworks markets
  • Expanded industrial and infrastructure offerings
  • Leading North American building products distributor

Where Ferguson Stands Today

• Extensive North American distribution network
• Leading plumbing and HVAC distributor
• Serving contractors and industrial customers
• Expanding digital commerce capabilities
• Focus on operational efficiency and logistics
• Growth through strategic acquisitions

Where Ferguson Stands Today

• Expanded digital commerce platform
• Increased supply chain efficiency
• Growth in value-added services
• Stronger contractor relationships
• Optimized distribution network
• Focus on core infrastructure markets
• Benefiting from construction demand trends

Why investors buy Ferguson NNN Properties or Ferguson ground Lease Properties?

Pros (what buyers like)

  • Strong Public Company
    NYSE-listed industry leader with a long operating history.
  • Essential Infrastructure Business
    Supplies plumbing, HVAC, waterworks, and industrial products.
  • Strategic Distribution Locations
    Facilities located in major construction and population 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
    Demand can fluctuate with residential and commercial construction cycles.
  • Lease Structure Variability
    Some assets are NN or modified NNN with landlord responsibilities.
  • Industrial Re-Tenanting Risk
    Specialized distribution facilities may require improvements for new tenants.
  • Limited Rent Growth
    Some leases include fixed or modest rental escalations.

Find out more

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

Ferguson Background & History

Ferguson is North America’s largest value-added distributor of plumbing, HVAC, waterworks, and industrial products. Founded in 1953, the company has grown through decades of organic expansion and strategic acquisitions, building an extensive network of distribution branches that serve professional contractors, commercial customers, municipalities, and industrial clients.

Today, Ferguson combines a nationwide distribution platform with digital commerce, supply chain technology, and value-added services to streamline procurement and project delivery. The company continues to invest in automation, logistics, and customer solutions that improve efficiency across the construction and infrastructure markets.

Why Ferguson Matters to NNN Investors

Ferguson operates one of the largest building products distribution networks in North America. Its facilities support essential residential, commercial, and infrastructure projects, making many locations critical to regional supply chains.

Many Ferguson properties occupy well-located industrial and commercial sites with excellent transportation access and proximity to growing construction markets. The company’s continued investment in digital capabilities, distribution efficiency, and value-added services helps strengthen its long-term operating platform.

What Buyers and Sellers Should Evaluate

For investors evaluating Ferguson NNN properties, a Ferguson net lease, or a Ferguson ground lease, the investment thesis is typically centred on real estate quality, tenant strength, and the strategic importance of each facility within the company’s distribution network.

Common searches include Ferguson real estate, Ferguson cap rate, Ferguson lease term, Ferguson tenant credit, and Ferguson industrial properties. Investment value is driven by lease economics, remaining lease term, facility functionality, market rent, and the property’s role within Ferguson’s broader operations.

Because Ferguson serves construction, renovation, and infrastructure markets, buyers should evaluate local market fundamentals, transportation access, building specifications, lease language, landlord responsibilities, and long-term demand for industrial distribution space. Well-located facilities with durable cash flow and modern functionality generally attract the strongest investor interest.

Corporate vs. Franchise | Store Count

Ferguson 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. Ferguson operates approximately 1,800+ locations across North America, including distribution branches, distribution centres, fabrication facilities, and specialised industrial operations. For investors, tenant credit, lease structure, facility quality, and strategic market location generally have a greater impact on investment value than the total number of locations.

Ferguson Financial Snapshot

Ferguson is a publicly traded company (NYSE: FERG) and generates billions of dollars in annual revenue through its North American distribution and value-added services platform. The company maintains strong operating scale, supported by its extensive branch network, contractor relationships, and essential infrastructure product demand. For net lease investors, Ferguson’s public company status, market leadership, distribution footprint, and operational strength are important factors when evaluating lease reliability and long-term income stability.

Ferguson Lease Types

Most single-tenant Ferguson properties are structured as long-term NNN or ground leases, although lease structures can vary by asset. While many properties are marketed as NNN, some may include NN or modified NNN structures with limited landlord responsibilities, such as roof, structure, or major capital items. As a result, buyers should carefully review lease language, expense responsibilities, rent escalations, remaining lease term, and renewal options before underwriting and pricing a Ferguson net lease 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 Ferguson ground lease properties or fee simple Ferguson 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.

Contact Us
Scroll to Top