Sherwin-Williams NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
5.8%
This Year Cap
6.5%
Cap Change
0.7%
Last Year Rating
BBB
This Year Rating
BBB
Rating Change
No change
Sherwin-Williams – 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
Sherwin-Williams
Sherwin-Williams Net Lease: Secure, Essential Investment
The Sherwin‑Williams Company is an investment‑grade tenant widely recognized for its long operating history, strong financial performance, and national retail footprint. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers evaluating Sherwin‑Williams net lease properties.
For 1031 exchange buyers, Sherwin‑Williams properties are important to compare as fee simple assets—since lease structure, remaining term, escalations, and tenant strength can materially impact pricing, financing, and long‑term resale value.
Investors often target Sherwin-Williams assets for:
- Stable Income Potential
- High-Traffic Retail Demand
- Strong Tenant Credit Profile
- Attractive 1031 Exchange Compatibility
Sherwin-Williams properties require close comparison of rent escalations, remaining lease term, extension options, and landlord responsibilities.
Sherwin-Williams Net Lease Properties for 1031 Exchange Buyers
Sherwin-Williams net lease properties often trade differently depending on lease structure. Buyers should carefully evaluate remaining term, renewal options, landlord obligations, and tenant credit to understand long-term risk and return.
Sherwin-Williams – 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 |
Sherwin-Williams Stock Price (NYSE:SHW)
Sherwin-Williams Investment Market Statistics
AVERAGE SALE PRICE
BUILDING SIZE
AVERAGE NOI
LAND
$/SF RANGE
LEASE TERM SHOWN
Sherwin-Williams Investor Snapshot (Quick Facts)
Origins & Growth (Past)
- Founded in 1866 as a small paint and varnish company
- Developed innovative paint formulas and high-quality coatings
- Expanded through regional branches and distribution networks
- Grew into a nationwide retail chain with company-owned stores
- Introduced professional and DIY-focused product lines
- Pioneered color-matching and specialty paint services
- Became a leading U.S. paint and coatings brand
Where Sherwin-Williams Stands Today
- Nationwide footprint with hundreds of retail and distribution locations
- Leading U.S. paint and coatings manufacturer and retailer
- Strong brand recognition among professionals and DIY consumers
- High repeat customer traffic and loyal professional accounts
- Expanding product lines and specialty coatings
- Focus on operational efficiency and supply chain excellence
- Growing digital and e-commerce capabilities
Where Sherwin-Williams Stands Today
- Expanded product innovation
- Enhanced supply chain and automation
- Growing digital sales and e-commerce presence
- Strengthened professional and retail customer loyalty
- Optimized store and distribution formats
- Sustainability and eco-friendly coatings focus
- Market tailwinds from housing and commercial construction growth
Why investors buy Sherwin-Williams NNN Properties or Sherwin-Williams ground Lease Properties?
Pros (what buyers like)
- Strong brand recognition
Nationally recognized paint and coatings leader with decades of operational history - Essential business demand
Supplies professional contractors and retail customers, supporting consistent repeat traffic - Prime real estate patterns
Many stores located in high-visibility retail corridors and industrial/commercial hubs - Attractive lease structures
Long-term NNN or absolute NNN leases common, appealing to passive and 1031 exchange buyers
Cons (what can bite you)
- Lease structure variability
Some deals may be NN or modified NNN, with landlord responsible for roof or structure - Industry cyclicality
Demand tied to housing, construction, and renovation trends - Flat or light rent growth
Many leases have minimal escalations during the primary term - Re-tenanting risk
Specialized store layouts may limit replacement tenants if the location is vacated
Investor Decision Framework (Buy / Hold / Sell)
✓ Strong “Buy Box” for a Sherwin-Williams Net Lease
• 10+ years term remaining (or 5+ with options) • Absolute NNN or clean NNN lease structure • High-visibility retail or commercial location with strong traffic counts • Modern store layout suited for professional and retail customers • Rent is reasonable vs market (supports backfill and resale)
02
⚠ Yellow Flags (Price Accordingly)
• NN lease with roof or structure responsibility on landlord • Flat rent with little or no increases during primary term • Atypical store layout (too small or oversized for reuse) • Non-prime location (low visibility or poor traffic counts) • Environmental or property condition issues requiring added diligence
Find out more
Sherwin-Williams Background & History
Sherwin-Williams is a leading global paint and coatings company, known for its extensive network of retail stores, professional-grade products, and industrial coatings. Founded in 1866 as a small paint supplier, the company grew through product innovation, acquisitions, and expansion of its distribution network.
Over time, Sherwin-Williams built a nationwide footprint, operating thousands of stores and distribution centers across the U.S. Today, customers rely on Sherwin-Williams for architectural paints, protective coatings, and professional products for both residential and commercial projects.
As the coatings market evolved, the company adapted through innovation, private-label programs, and operational efficiencies that support high-volume transactions. Its retail and professional segments provide stable, recurring demand, helping the brand maintain market leadership.
Why Sherwin-Williams Matters to NNN Investors
Sherwin-Williams operates as a strong, investment-grade tenant with a reputation for stable sales and long-term lease commitments. The business model is centered on repeat customers, professional contractors, and commercial demand, with many stores located in high-traffic retail corridors.
Its focus on essential products and professional services supports consistent cash flow, while the company’s continued growth, product innovation, and operational efficiency strengthen unit-level performance. This combination makes Sherwin-Williams a preferred tenant for NNN and ground lease investments.
What Buyers and Sellers Should Evaluate
Investors evaluating Sherwin-Williams NNN or ground lease properties typically focus on site fundamentals, lease structure, and tenant credit. Prime locations, lease term, and corporate guarantees often matter more than brand recognition alone.
Key evaluation points include property visibility, traffic patterns, surrounding rooftops, and lease language defining landlord responsibilities. Investors should also assess long-term cash-flow stability, lease escalations, renewal options, and potential for resale or 1031 exchange compatibility.
Ultimately, Sherwin-Williams net lease value is driven by site-specific factors, corporate credit strength, and how the location fits within the company’s broader retail and professional network.
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 Sherwin-Williams ground lease properties or fee simple Sherwin-Williams 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.
.