Labcorp NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
6.3%
This Year Cap
6.6%
Cap Change
0.3%
Last Year Rating
BBB+
This Year Rating
BBB+
Rating Change
No change
Labcorp – 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
Labcorp
Labcorp Net Lease: Secure, Essential Investment
Labcorp is a leading national provider of laboratory testing and diagnostic services with an investment-grade credit profile. This guide reviews Labcorp cap rates, lease structures, tenant credit, and key due diligence considerations for buyers and sellers evaluating single-tenant Labcorp properties.
For 1031 exchange buyers, Labcorp properties can provide stable income backed by a healthcare tenant operating in an essential, recession-resistant industry. Investors should compare lease term, rent escalations, location quality, and facility type when evaluating investment opportunities.
Investors often target Labcorp assets for:
- Stable Income Potential
- Essential Healthcare Real Estate
- Investment-Grade Tenant Credit
- Attractive 1031 Exchange Compatibility
Because laboratory facilities are often built or configured for diagnostic testing, buyers should carefully evaluate building adaptability, remaining lease term, renewal options, rent growth, and long-term real estate fundamentals before purchasing.
Labcorp Properties for 1031 Exchange Buyers
Labcorp properties are frequently sought by 1031 exchange investors due to the company’s strong credit profile and essential healthcare operations. Buyers should evaluate remaining lease term, annual rent escalations, landlord responsibilities, renewal options, market demographics, and the property’s potential for future reuse if the tenant vacates.
Labcorp – 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 |
Labcorp Stock Price (NYSE: LH)
Labcorp Investment Market Statistics
AVERAGE SALE PRICE
BUILDING SIZE
AVERAGE NOI
LAND
$/SF RANGE
LEASE TERM SHOWN
Labcorp Investor Snapshot (Quick Facts)
Origins & Growth (Past)
- Founded in 1978 as Roche BioMedical
- Expanded through strategic acquisitions
- Merged with Laboratory Corporation of America in 1995
- Built one of the nation’s largest laboratory networks
- Expanded into diagnostics, specialty testing, and drug development services
- Established a nationwide presence serving hospitals, physicians, employers, and patients
Where Labcorp Stands Today
- Leading U.S. laboratory diagnostics provider
- Nationwide network of patient service centers
- Serves hospitals, physicians, employers, and patients
- Primarily corporate-operated laboratory facilities
- Expanding advanced diagnostics and specialty testing
- Focused on innovation, operational efficiency, and healthcare outcomes
Where Labcorp Stands Today
- Advanced Diagnostics
- Specialty Testing
- Laboratory Automation
- Physician Partnerships
- National Network
- Operational Efficiency
- Healthcare Demand
Why investors buy Labcorp NNN Properties or Labcorp ground Lease Properties?
Pros (what buyers like)
- Strong tenant credit
Investment-grade healthcare company with a long operating history. - Essential healthcare services
Provides diagnostic testing and laboratory services with recurring demand. - Defensive industry
Healthcare demand remains relatively stable across economic cycles. - Long-term lease structures
Many properties feature long-term NNN leases attractive to passive and 1031 exchange investors. - Established operating locations
Many labs serve long-standing physician networks, hospitals, and local communities.
Cons (what can bite you)
- Specialized buildings
Laboratory improvements may require costly modifications for a new tenant. - Limited tenant pool
Medical laboratory facilities can be more difficult to re-lease than standard retail space. - Lease structure variability
Some leases may include landlord responsibilities for roof, structure, or capital items. - Limited rent growth
Certain leases offer fixed or modest rent escalations over the lease term. - Healthcare industry changes
Reimbursement, regulatory, or testing demand changes can affect long-term facility strategy.
Investor Decision Framework (Buy / Hold / Sell)
✓ Strong “Buy Box” for a Labcorp Net Lease
• 10–15+ years remaining lease term (or shorter term with strong renewal options) • Absolute NNN or true NNN lease structure with minimal landlord responsibilities • Established medical corridor or high-density healthcare location • Purpose-built laboratory serving a strong physician and patient base • Market-supported rent with scheduled rent escalations and strong long-term real estate fundamentals
02
⚠ Yellow Flags (Price Accordingly)
• NN lease with landlord responsible for roof, structure, or capital items • Flat rent with limited or no rent escalations • Specialized laboratory build-out that limits future tenant flexibility • Non-prime medical location with weak healthcare demand or accessibility • Re-tenanting risk due to highly customized laboratory improvements
Find out more
Labcorp Background & History
Labcorp is one of the nation’s largest diagnostic laboratory companies, providing essential medical testing and healthcare services across the United States. Since its formation through the merger of Roche BioMedical and Laboratory Corporation of America in 1995, the company has expanded into a nationwide network serving physicians, hospitals, employers, health systems, and patients.
Over time, Labcorp has grown beyond routine laboratory testing to offer specialty diagnostics, genetic testing, clinical trials support, and drug development services. Today, patients and healthcare providers rely on Labcorp locations for routine blood work, diagnostic testing, and specialized laboratory services that support medical decision-making.
As healthcare continues to evolve toward precision medicine and advanced diagnostics, Labcorp has invested in laboratory automation, digital technologies, and expanded testing capabilities to improve efficiency, accuracy, and patient access.
Why Labcorp Matters to NNN Investors
Labcorp operates one of the largest clinical laboratory networks in the United States, providing essential healthcare services with recurring demand. Its business model is supported by physician referrals, hospital partnerships, employer health programs, and an aging population that continues to increase demand for diagnostic testing.
Many Labcorp facilities are strategically located within established medical corridors, near hospitals, outpatient centers, and physician offices. These healthcare-oriented locations typically benefit from consistent patient traffic and long-term demand driven by essential medical services rather than discretionary consumer spending.
This focus on essential healthcare services helps make Labcorp an attractive tenant for many net lease investors. The company’s investment-grade credit profile, nationwide operating platform, and continued investment in diagnostic innovation contribute to its long-term relevance within the healthcare real estate sector.
What Buyers and Sellers Should Evaluate
For investors evaluating Labcorp NNN properties, the investment thesis is typically centered on tenant credit quality, lease structure, and the long-term value of the underlying real estate. Buyers should evaluate remaining lease term, rent escalations, landlord responsibilities, building adaptability, and the property’s location within its local healthcare market.
Common searches include Labcorp real estate, Labcorp cap rate, Labcorp lease term, Labcorp tenant credit, and Labcorp NNN properties. Ultimately, investment value is driven by lease economics, property fundamentals, and the strategic importance of the location within Labcorp’s national laboratory network.
Because many laboratory facilities contain specialized medical improvements, investors should also evaluate the property’s potential for future reuse if the tenant vacates. Factors such as proximity to hospitals and medical offices, accessibility, demographics, building flexibility, and local healthcare demand can significantly influence long-term value, cash flow durability, and exit strategy.
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 Labcorp ground lease properties or fee simple Labcorp 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.