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

Floor & Decor Investment Properties

Last Year Cap

6.5%

This Year Cap

6.7%

Cap Change

0.3%

Last Year Rating

BB

This Year Rating

BB

Rating Change

Stable

Floor & Decor – 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

Floor & Decor

Cap Rates NNN
Last Year 6.5%
This Year 6.7%
Change 0.3%
S&P Rating CREDIT
Last Year BB
This Year BB
Change Stable

Floor & Decor Net Lease: Secure, Essential Investment

Floor & Decor is a national specialty retailer focused on hard-surface flooring, installation materials, decorative accessories, and related commercial surfaces. Founded in 2000, the company operated 281 warehouse-format stores and five design studios across 39 states as of June 25, 2026. This guide reviews Floor & Decor NNN Properties, lease terms, ground lease structures, tenant considerations, and key due diligence factors for buyers and sellers. Floor & Decor Holdings, Inc.

  • Long-Term Income Potential
  • Large-Format Retail Locations
  • Established National Retail Brand
  • 1031 Exchange Compatibility

Floor & Decor Ground Lease Properties for 1031 Exchange Buyers

Floor & Decor Ground Lease Properties may differ from fee-simple Floor & Decor assets in terms of ownership rights, lease economics, financing considerations, and long-term residual value. Buyers should carefully evaluate the ground lease structure, remaining term, renewal and extension options, rent escalations, landlord responsibilities, tenant obligations, reversion provisions, and site characteristics before underwriting and pricing an acquisition.

FND stock price  by TradingView

Floor & Decor Investment Market Statistics

AVERAGE SALE PRICE

$10,430,000

BUILDING SIZE

49,975 – 89,297 SF

AVERAGE NOI

$648,664

LAND

2.71 – 5.49 acres

$/SF RANGE

5.75% – 7.00%

LEASE TERM SHOWN

15 years

Floor & Decor Investor Snapshot (Quick Facts)

Origins & Growth (Past)

  • Founded in 2000 in Atlanta, Georgia
  • Opened its first store with a focus on hard-surface flooring
  • Expanded from a regional retailer into a national specialty retailer
  • Built a large warehouse-format store network
  • Expanded its assortment across tile, wood, laminate, vinyl, and natural stone
  • Developed commercial flooring capabilities alongside its retail business
 

Where Floor & Decor Stands Today

  • 281 warehouse-format stores as of June 25, 2026
  • 5 design studios across 39 states
  • Warehouse stores average approximately 75,000 SF
  • Offers flooring, installation materials, tools, and decorative accessories
  • Serves homeowners, DIY/BIY customers, and professional customers
  • Operates as a multi-channel retailer with stores and FloorAndDecor.com

Where Floor & Decor Stands Today

  • Continued expansion of its warehouse-format store network
  • Targeting long-term growth toward 500 warehouse-format stores
  • Expanding its commercial flooring business through Spartan Surfaces
  • Investing in store growth, supply chain, technology, and customer experience
  • Maintaining a broad in-stock flooring assortment across multiple categories
  • Expanding its presence across U.S. markets
 

Why investors buy Floor & Decor NNN Properties or Floor & Decor ground Lease Properties?

Pros (what buyers like)

  • Established national retail brand
    Recognized specialty retailer with a growing U.S. store footprint

  • Large-format retail locations
    Warehouse stores provide substantial physical retail presence

  • Long-term lease opportunities
    Many marketed properties feature long-term NNN lease structures

  • Growing store network
    Expanding warehouse-format footprint across multiple U.S. markets

Cons (what can bite you)

  • Lease structure variability
    Individual assets can have different landlord responsibilities

  • Specialized property format
    Large-format buildings may limit alternative tenant reuse

  • Local market competition
    Store performance can vary by market, demographics, and competition

  • Re-tenanting challenges
    Large specialized retail spaces may require significant capital to re-lease

Find out more

Floor & Decor Investment Properties

Floor & Decor Background & History

Floor & Decor is a specialty retailer focused on hard-surface flooring and related accessories. Founded in 2000, the company has grown from a regional flooring retailer into a multi-channel national business serving homeowners, DIY and BIY customers, and professional customers. Its product assortment includes laminate and vinyl, tile, wood, natural stone, installation materials, and decorative accessories. Floor & Decor Holdings, Inc.

Over time, Floor & Decor expanded its warehouse-format store network across the United States while developing its e-commerce platform, distribution infrastructure, and commercial surfaces business. Its warehouse-format stores average approximately 75,000–76,000 square feet, reflecting the large-format nature of the company’s retail model. SEC

Today, Floor & Decor operates a combination of warehouse-format stores, smaller design studios, distribution centers, and its online platform. As of June 25, 2026, the company operated 281 warehouse-format stores and five design studios across 39 states. Floor & Decor Holdings, Inc.

Why Floor & Decor Matters to NNN Investors

Floor & Decor is relevant to NNN investors because its stores are typically large-format retail properties designed around flooring displays, inventory, customer access, and substantial parking requirements. The company’s warehouse-format stores average approximately 75,000 square feet, making property size, site configuration, access, visibility, and surrounding trade area important considerations for investors. SEC

The company serves both professional customers and homeowners, including DIY and BIY customers, while maintaining a broad in-stock assortment of hard-surface flooring and related products. Its expanding store network provides investors with a national retail footprint to evaluate when considering individual Floor & Decor properties. Floor & Decor Holdings, Inc.

What Buyers and Sellers Should Evaluate

For investors evaluating Floor & Decor NNN properties, Floor & Decor net lease properties, or Floor & Decor ground lease properties, the investment analysis should focus on the individual property’s lease economics, real estate fundamentals, and tenant obligations rather than the brand name alone.

Common considerations include Floor & Decor real estate, Floor & Decor cap rates, Floor & Decor lease terms, Floor & Decor tenant credit, and Floor & Decor 1031 exchange properties. Buyers should evaluate remaining lease term, contractual rent increases, renewal options, landlord responsibilities, tenant or guarantor obligations, and the overall NNN or ground lease structure.

Property-level analysis should also include building size, site acreage, ingress and egress, visibility, traffic patterns, surrounding demographics, nearby competitors, parking, zoning, and alternative-use potential. Because Floor & Decor stores are large-format specialty retail properties, investors should also consider the potential cost and difficulty of re-tenanting the property if the existing lease eventually expires.

Corporate vs. Franchise | Store Count

Floor & Decor operates a company-owned retail model rather than a traditional franchise network. For NNN and ground lease investors, this means individual properties are generally occupied as part of the company’s corporate store network. As of June 25, 2026, Floor & Decor operated 281 warehouse-format stores and five design studios across 39 states. Its warehouse stores average approximately 75,000 square feet, making location quality, site characteristics, lease structure, and tenant obligations important considerations for investors. SEC

Floor & Decor Financial Snapshot

Floor & Decor is a publicly traded specialty retailer focused on hard-surface flooring and related accessories, with additional commercial surfaces operations. For fiscal 2025, the company reported approximately $4.68 billion in net sales, $208.6 million in net income, and $538.2 million in adjusted EBITDA. The company ended fiscal 2025 with 270 warehouse-format stores and five design studios and continued expanding during 2026. For net lease investors, company financial performance, store growth, lease obligations, and tenant credit are important factors when evaluating long-term income stability.

Floor & Decor Lease Types

Floor & Decor properties can be structured under different lease arrangements, including NNN leases, modified NNN leases, and ground lease structures, depending on the individual property and transaction. In a typical net lease arrangement, the tenant may be responsible for a significant portion of the property’s operating expenses, including taxes, insurance, maintenance, and other costs, but lease obligations can vary substantially from one asset to another. For NNN and ground lease investors, understanding the exact lease structure is essential when evaluating long-term cash flow and investment risk. Before underwriting or pricing a Floor & Decor property, investors should carefully review the original lease agreement, remaining lease term, contractual rent escalations, renewal and extension options, expense responsibilities, guaranty provisions, assignment rights, default provisions, and landlord obligations.

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 Floor & Decor ground lease properties or fee simple Floor & Decor 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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