Kohl’s NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
7.2%
This Year Cap
7.5%
Cap Change
0.3%
Last Year Rating
BB
This Year Rating
BBB-
Rating Change
Up
Kohl's – 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
Kohl's
Kohl’s Net Lease: Secure, Essential Investment
Kohl’s is a nationally recognized big-box retail tenant commonly found in net lease and sale-leaseback transactions. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers.
For 1031 exchange buyers, Kohl’s properties should be carefully compared to other big-box retail investments, as large building size, lease structure, and re-tenanting risk can materially impact pricing, financing, and long-term resale value.
Investors often target Kohl’s assets for:
- Above-Average Yield Compared to QSR/Pharmacy NNN
- Established Retail Locations with Strong Traffic Drivers
- Long-Term Occupancy History in Many Markets
- 1031 Exchange Compatibility at Higher Cap Rates
Kohl’s properties require close evaluation of remaining lease term, rent structure, store performance, co-tenancy dynamics, and backfill potential, as these factors directly influence asset stability and exit value.
Kohl’s Properties for 1031 Exchange Buyers
Kohl’s assets often trade differently than smaller-format NNN properties due to their large footprint and evolving department store sector dynamics. Buyers should carefully review lease structure, remaining term, renewal options, landlord responsibilities, and re-tenanting feasibility to fully understand long-term risk and return potential.
Kohl's – 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 |
Kohl’s Stock Price (NYSE:KSS)
Kohl’s Investment Market Statistics
AVERAGE SALE PRICE
BUILDING SIZE
AVERAGE NOI
LAND
$/SF RANGE
LEASE TERM SHOWN
Kohl’s Investor Snapshot (Quick Facts)
Origins & Growth (Past)
- Founded as a neighborhood grocery store in Wisconsin
- Expanded into department store retail in the 1960s
- Grew rapidly through suburban big-box store expansion
- Established a strong national footprint across the U.S.
- Focused on value-oriented apparel, home goods, and private brands
- Introduced partnerships with major brands and exclusive product lines
- Evolved into a leading U.S. department store chain under Kohl’s
Where Kohl’s Stands Today
- Large U.S. footprint with nationwide suburban locations
- Established player in mid-tier department store retail
- Strong focus on value-driven and promotional pricing
- Growing partnerships with national brands (e.g., Sephora)
- Expanding omnichannel and e-commerce capabilities
- Ongoing store optimization and cost control initiatives
- Focus on improving margins and inventory efficiency
Where Kohl’s Stands Today
- More private brands
- Stronger partnerships (Sephora growth)
- Digital expansion
- Omnichannel focus
- Store optimization
- Inventory discipline
- Value retail demand
Why investors buy Kohl’s NNN Properties or Kohl’s ground Lease Properties?
Pros (what buyers like)
- Kohl’s brand recognition
Nationally known department store with long operating history and established U.S. footprint - Higher yield opportunity
Typically offers higher cap rates compared to QSR and pharmacy NNN assets - Large, well-located sites
Many stores are positioned in strong retail corridors with good visibility and access - Long-term occupancy history
Many locations have operated successfully for years, supporting stable cash flow - 1031 exchange appeal
Attractive pricing and yield make Kohl’s properties suitable for exchange buyers
Cons (what can bite you)
- Big-box re-tenanting risk
Large building size can make backfilling difficult if the tenant vacates - Lease structure variability
Some leases may be NN or modified NNN with landlord responsibilities - Retail sector exposure
Department store performance can be sensitive to economic cycles and consumer trends - Limited rent growth
Leases may have flat rent or minimal increases during the primary term - Location dependency
Asset performance heavily relies on surrounding retail strength and trade area demand
Investor Decision Framework (Buy / Hold / Sell)
✓ Strong “Buy Box” for a Kohl’s Net Lease
• 10–15+ years term remaining (or strong options providing extended control) • Absolute NNN or clean NNN lease with minimal landlord responsibilities • Strong retail corridor location with dominant co-tenancy and traffic drivers • Proven store performance with long operating history at the site • Reasonable rent relative to market (supports re-tenanting and resale)
02
⚠ Yellow Flags (Price Accordingly)
• NN or modified NNN lease with roof, structure, or parking lot responsibility on landlord • Short remaining lease term without strong renewal options • Oversized or outdated store format limiting re-tenanting flexibility • Weak retail corridor or declining trade area fundamentals • High rent vs. market, creating backfill and resale risk
Find out more
Kohl’s Background & History
Kohl’s is a national department store retailer best known for its large-format suburban stores offering apparel, home goods, and value-oriented merchandise. What began as a small grocery business evolved into a full-line department store concept focused on accessible pricing, broad product selection, and convenient shopping experiences.
Over time, the company expanded across the United States, building a strong presence in suburban retail corridors. Kohl’s differentiated itself through value-driven pricing, private-label brands, and promotional strategies that appeal to a wide customer base.
As consumer behavior shifted, the company adapted by investing in store optimization, omnichannel capabilities, and strategic partnerships, including shop-in-shop concepts like Sephora, to enhance in-store traffic and customer engagement.
Why Kohl’s Matters to NNN Investors
Today, Kohl’s operates a large national footprint with stores typically located in established retail corridors and suburban trade areas. The business model is supported by destination-based shopping, repeat customer visits, and value-focused retail demand.
Unlike convenience or quick-service retail, Kohl’s performance is more closely tied to consumer spending trends and regional retail strength. However, many locations benefit from strong co-tenancy, ample parking, and high visibility, which help support long-term occupancy.
The company continues to focus on cost control, inventory efficiency, and digital integration, positioning itself to remain competitive within the evolving retail landscape.
What Buyers and Sellers Should Evaluate
For investors evaluating Kohl’s NNN properties, a Kohl’s net lease, or a Kohl’s ground lease, the investment thesis is typically centered on real estate fundamentals, lease structure, and re-tenanting potential, rather than daily-use retail demand alone.
Common searches include Kohl’s real estate, Kohl’s cap rate, Kohl’s lease term, Kohl’s tenant credit, and big-box retail investment risk. Ultimately, Kohl’s net lease value is driven by location quality, building size, lease economics, and adaptability of the asset for future tenants.
Because Kohl’s stores are large-format properties, buyers should carefully evaluate box size, site layout, surrounding retail health, and replacement tenant demand in the event of vacancy.
In addition, investors should consider long-term cash-flow durability, lease rollover risk, and exit strategy flexibility, particularly in markets where big-box retail demand may evolve over time.
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 Kohl’s ground lease properties or fee simple Kohl’s 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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