Where Home Depot Stands Today
- Expanded Pro-focused services
- Supply chain modernization
- Digital and omnichannel growth
- Stronger loyalty ecosystem
- Optimized store formats
- Enhanced delivery & fulfillment
- Housing and repair demand tailwinds
Home Depot NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
5.6%
This Year Cap
5.7%
Cap Change
0.1%
Last Year Rating
A
This Year Rating
A
Rating Change
No change
Home depot – 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
Home depot
Cap Rates
NNN
Last Year
5.6%
This Year
5.7%
Change
0.1%
S&P Rating
CREDIT
Last Year
A
This Year
A
Change
No change
Home Depot Net Lease: Secure, Essential Investment
The Home Depot is a nationally recognized, investment-grade net lease tenant. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers.
For 1031 exchange buyers, Home Depot Ground Lease Properties are important to compare against fee simple Home Depot assets, as lease structure can materially impact pricing, financing, and long-term resale value.
Investors often target Home Depot assets for:
Stable Income Potential
Essential Home Improvement Retail Demand
Strong Tenant Credit Profile
Attractive 1031 Exchange Compatibility
Home Depot Ground Lease Properties require close comparison of rent escalations, remaining lease term, extension options, and residual land value versus fee simple ownership.
Home Depot Ground Lease Properties for 1031 Exchange Buyers
Home Depot ground lease assets often trade differently than fee simple Home Depot properties. Buyers should carefully evaluate lease structure, remaining term, renewal options, landlord responsibilities, and reversion rights to properly assess long-term risk and return.
Home Depot – 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 |
Home Depot Stock Price (NYSE:HD)
Home Depot Investment Market Statistics
AVERAGE SALE PRICE
$18,000,000 – $25,000,000
BUILDING SIZE
100,000 – 140,000 SF
AVERAGE NOI
$900,000 – $1,400,000
LAND
10 – 15+ acres
$/SF RANGE
$150 – $250
LEASE TERM SHOWN
20 years
Home Depot Investor Snapshot (Quick Facts)
Origins & Growth (Past)
- Founded as a warehouse-style home improvement retailer in 1978
- Pioneered the big-box home improvement retail model
- Focused on everyday low pricing and high in-stock inventory
- Expanded rapidly across major U.S. metro markets
- Built strong relationships with professional contractors (Pro customers)
- Invested heavily in supply chain and distribution infrastructure
- Became the largest home improvement retailer in the United States
Where Home Depot Stands Today
- Large U.S. and international store footprint
- Leader in home improvement and building materials retail
- Strong Pro contractor and DIY customer base
- High average ticket sales with project-driven demand
- Expanding digital, delivery, and omnichannel capabilities
- Continued investment in supply chain and distribution
- Focused on operational efficiency and margin discipline
Why investors buy Home Depot NNN Properties or Home Depot ground Lease Properties?
Pros (what buyers like)
- Home Depot brand strength
Industry-leading home improvement retailer with national scale and strong unit-level sales volumes - Essential home improvement demand
Repair, maintenance, and renovation spending supports recurring project-driven traffic - Dominant retail locations
Typically positioned in major power centers with strong co-tenancy and high visibility - Long-term lease structures
Many assets feature long primary terms under NNN or ground leases, attractive to passive and 1031 buyers
Cons (what can bite you)
- Large box exposure
100,000+ SF buildings can be difficult and costly to re-tenant if vacated - Capital expense risk
Older leases may leave roof, structure, or parking lot responsibilities with the landlord - Economic sensitivity
Performance can be influenced by housing cycles, interest rates, and consumer spending trends - Higher price point
Large deal sizes can reduce buyer pool liquidity at resale compared to smaller net lease assets
Investor Decision Framework (Buy / Hold / Sell)
01
✓ Strong “Buy Box” for a Home Depot Net Lease
• 15+ years remaining term (or 10+ with strong renewal options) • Absolute NNN or ground lease structure with minimal landlord responsibilities • Dominant power center location with strong co-tenancy and regional draw • High-volume store with strong trade-area demographics and contractor presence • Sustainable rent level relative to market fundamentals (supports long-term resale and backfill potential)
02
⚠ Yellow Flags (Price Accordingly)
• NN or modified NNN lease with roof, structure, or parking lot responsibility on landlord • Flat rent with limited or no escalations during the primary term • Oversized or functionally obsolete box that may be difficult to re-tenant • Secondary retail corridor with weak co-tenancy or below-average traffic counts • Short remaining lease term without strong renewal options or rent growth
Find out more
Home Depot Background & History
Home Depot is a national home improvement retailer best known for its large-format warehouse stores serving homeowners and professional contractors. What began in 1978 as a new big-box retail concept evolved into the dominant home improvement model, focused on wide product selection, competitive pricing, and project-based solutions.
Over time, the company built a nationwide footprint anchored by high-volume stores in major retail corridors. Today, customers rely on Home Depot locations for building materials, tools, appliances, renovation supplies, and essential repair products that support both DIY and professional projects.
As housing markets expanded and consumer expectations shifted toward convenience and availability, the brand adapted through supply chain modernization, standardized store formats, expanded Pro services, and integrated digital ordering and fulfillment capabilities.
Why Home Depot Matters to NNN Investors
Today, The Home Depot operates one of the largest home improvement retail networks in the United States, serving millions of customers annually. The business model is centered on housing-related demand, repair and maintenance spending, and contractor-driven purchasing.
Stores are typically positioned in dominant power centers with strong co-tenancy, high traffic counts, and large trade areas. In addition, the company continues investing in Pro customer programs, private-label brands, and omnichannel infrastructure to strengthen store-level productivity.
This focus on essential home improvement demand helps explain why Home Depot remains relevant even as retail formats evolve. Management continues adapting operations to align with housing trends, digital growth, and professional contractor needs.
What Buyers and Sellers Should Evaluate
For investors evaluating Home Depot NNN properties, a Home Depot net lease, or a Home Depot ground lease, the investment thesis is typically centered on long-term tenancy supported by dominant real estate fundamentals. As a result, buyers often place greater emphasis on lease structure, box reusability, and trade-area strength than on brand recognition alone.
Common searches include Home Depot real estate, Home Depot cap rate, Home Depot lease term, Home Depot tenant credit, and ground lease vs. fee simple ownership. Ultimately, Home Depot net lease value is driven by site-specific factors, lease economics, and how the location performs within its regional housing market.
Because stores are large-format assets, buyers and sellers should evaluate co-tenancy strength, traffic exposure, population growth, contractor density, and competitive positioning. In addition, investors should review lease language defining landlord responsibilities (roof, structure, parking lot), rent escalations, remaining term, and exit strategy flexibility.
As housing cycles and economic conditions evolve, the strongest Home Depot locations tend to be those positioned in dominant retail corridors with durable long-term demand. Each property should therefore be analyzed individually, with attention to real estate fundamentals, lease structure, and long-term cash-flow durability.
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 Home Depot ground lease properties or fee simple Home Depot 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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