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

Last Year Cap

6.6%

This Year Cap

6.8%

Cap Change

0.3%

Last Year Rating

A

This Year Rating

A

Rating Change

No change

UPS – 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

UPS

Cap Rates NNN
Last Year 6.6%
This Year 6.8%
Change 0.3%
S&P Rating CREDIT
Last Year A
This Year A
Change No change

UPS Net Lease: Secure, Essential Investment

 

United Parcel Service is a nationally recognized, investment-grade net lease tenant and one of the largest logistics and package delivery companies in the world. This guide reviews cap rates, lease structures, tenant credit, and key due diligence considerations for buyers and sellers evaluating UPS net lease properties.

Investors often target UPS assets for:

  • Stable Industrial Income Potential
  • Essential Logistics and Distribution Operations
  • Strong Investment-Grade Tenant Credit
  • Attractive 1031 Exchange Compatibility

UPS ground lease properties require close evaluation of rent escalations, remaining lease term, facility functionality, extension options, and residual land value versus fee simple ownership.

UPS Ground Lease Properties for 1031 Exchange Buyers

UPS ground lease properties often trade differently than fee simple UPS assets. Buyers should carefully evaluate lease structure, remaining lease term, renewal options, landlord responsibilities, loading functionality, truck access, and long-term industrial reusability to better understand risk and return characteristics. Many UPS properties occupy strategically located logistics corridors and infill industrial markets, making real estate fundamentals, transportation access, and operational utility key factors when underwriting long-term investment performance and resale value.

UPS – 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

UPS Stock Price (NYSE: UPS)

UPS stock price by TradingView

UPS Investment Market Statistics

AVERAGE SALE PRICE

$25,000,000

BUILDING SIZE

25,000 – 120,000 SF

AVERAGE NOI

$1,500,000

LAND

3.0 – 15.0 Acres

$/SF RANGE

$120 – $260/SF

LEASE TERM SHOWN

20 years

UPS Investor Snapshot (Quick Facts)

Origins & Growth (Past)

• Founded in 1907 in Seattle
• Expanded nationwide through logistics growth and acquisitions
• Built one of the largest package delivery networks
• Established major urban and industrial hub locations
• Adopted advanced shipping and tracking technology
• Became leading global logistics provider

 

 

Where UPS Stands Today

• Extensive global logistics and delivery network
• Leading package delivery and supply chain company
• High daily shipping and delivery volumes
• Primarily corporate-operated facilities
• Expanding automation and digital logistics systems
• Focus on operational efficiency and cost control

Where UPS Stands Today

• Logistics Growth
• Delivery Demand
• Network Efficiency
• Supply Chain
• Automation Expansion
• Digital Tracking
• E-commerce Growth
• Route Optimization

 

Why investors buy UPS NNN Properties or UPS ground Lease Properties?

Pros (what buyers like)

  • Strong tenant brand recognition
    UPS is one of the largest package delivery and logistics companies in the world, with a long operating history and a globally recognized brand.
  • Essential logistics and shipping services
    UPS supports e-commerce, business shipping, supply chain logistics, and last-mile delivery, making its services closely tied to daily commercial activity and consumer demand.
  • E-commerce driven demand
    The continued growth of online shopping has increased long-term demand for package distribution, shipping centers, and logistics infrastructure.
  • Strategic infill locations
    Many UPS Stores and distribution-related properties are positioned in dense retail corridors, population centers, and high-traffic commercial areas that support recurring customer visits.
  • Long-term passive investment appeal
    UPS-related NNN and ground lease properties can attract passive investors seeking stable occupancy, predictable income, and lower day-to-day management responsibilities.

Cons (what can bite you)

  • Lease structure variability
    Not all UPS-related properties are true NNN investments. Some leases may include landlord responsibilities for roof, structure, parking lot, or maintenance items.
  • Corporate vs. franchise differences
    Many The UPS Store locations are franchise-operated rather than corporately operated, making franchisee financial strength an important consideration.
  • Limited rent escalations
    Some UPS leases include modest annual increases or flat renewal options, which may impact long-term income growth relative to inflation.
  • Specialized property layouts
    Distribution and shipping-oriented improvements may require additional capital if the property is ever re-tenanted.
  • Location-dependent performance
    Traffic volume, surrounding demographics, access, parking, and proximity to commercial centers can significantly impact store performance and long-term value.
 

Find out more

UPS NNN properties, UPS net lease, UPS ground lease, UPS real estate, UPS investment property, UPS cap rate, UPS lease term, UPS tenant credit, The UPS Store NNN, UPS commercial property, UPS franchise real estate, single tenant UPS property, UPS absolute NNN lease, UPS passive income property, net lease investments

UPS Background & History

UPS is a global logistics and package delivery company best known for its extensive shipping, distribution, and supply chain network across the United States and internationally. What began as a small messenger and delivery business evolved into one of the world’s largest transportation and logistics providers focused on parcel delivery, freight services, and e-commerce fulfillment.

Over time, the company built a broad operational footprint, expanding beyond traditional package delivery into supply chain management, international logistics, freight forwarding, and business shipping services. Today, customers rely on UPS locations and services for shipping, returns, printing, mailbox services, and time-sensitive delivery solutions that support both consumers and businesses.

As consumer behavior has increasingly shifted toward e-commerce and convenience, UPS has adapted through logistics automation, expanded distribution capabilities, digital tracking systems, and operational efficiencies designed to support high package volumes and fast delivery times.

Why UPS Matters to NNN Investors

UPS operates a large network of logistics, distribution, and retail shipping locations across the United States, serving businesses and consumers with daily shipping and delivery needs. The business model is centered on essential logistics demand, recurring commercial activity, and locations positioned within dense population centers and major transportation corridors.

Many UPS-related properties benefit from strategic infill positioning, easy access, and proximity to residential and commercial demand drivers that support consistent traffic and operational relevance. In addition, the company continues investing in automation, digital logistics platforms, and supply chain optimization to improve efficiency and customer experience.

This focus on essential commerce and delivery infrastructure helps explain why UPS remains relevant as retail and consumer habits evolve. The company continues refining its logistics network and operations to align with changing shipping demand, e-commerce growth, and last-mile delivery trends.

What Buyers and Sellers Should Evaluate

For investors evaluating UPS NNN properties, a UPS net lease, or a UPS ground lease, the investment thesis is typically centered on location quality, tenant stability, and long-term logistics demand. As a result, buyers often place greater emphasis on lease structure, operator strength, and real estate fundamentals than on brand recognition alone.

Common searches include UPS real estate, UPS cap rate, UPS lease term, UPS tenant credit, and shipping center performance. Ultimately, UPS net lease value is driven by site-specific fundamentals, lease economics, and how the location performs within its surrounding trade area and logistics network.

As shipping and consumer behavior continue to evolve, the strongest UPS locations tend to be those that remain operationally important within their markets. Buyers and sellers should evaluate each property individually, including ingress and egress, visibility, traffic counts, parking, surrounding population density, nearby competition, and lease language defining landlord responsibilities.

In addition, investors should consider long-term cash-flow durability, franchisee or operator strength where applicable, evolving logistics patterns, and how the asset may perform across different hold periods and exit strategies.

Corporate vs. Franchise | Store Count

UPS operates primarily under a corporate structure for its logistics and distribution operations, while many The UPS Store locations operate under a franchise model. For NNN and ground lease investors, this means the lease obligor can vary between corporate-backed entities and individual franchise operators, making tenant review and operator strength important during due diligence. In the U.S., The UPS Store network operates 5,000+ retail locations, while UPS also maintains a large nationwide logistics and distribution footprint. For investors, lease structure, operator quality, real estate fundamentals, and site performance typically matter more than total location count alone.

UPS Financial Snapshot

UPS operates as a publicly traded logistics and transportation company and generates tens of billions in annual revenue through package delivery, freight, supply chain, and e-commerce logistics services. The company maintains substantial operating cash flow and a large global distribution network that supports its long-term operational commitments. For net lease investors, UPS’s scale, global brand recognition, and essential role in commerce and logistics are important factors when evaluating tenant stability and long-term income durability. In addition, the company’s position within e-commerce and supply chain infrastructure continues to support ongoing demand for shipping and distribution services.

UPS Lease Types

Most single-tenant UPS properties are structured as long-term NNN or ground leases, though lease structures can vary depending on the property type and operator. While many UPS-related assets are marketed as NNN investments, some may be NN or modified NNN leases with limited landlord responsibilities for items such as roof, structure, or parking lot maintenance. As a result, buyers should carefully review lease language, expense responsibilities, renewal options, and remaining lease term before underwriting and pricing the asset. In addition, investors should evaluate whether the lease is backed by a corporate entity or a franchise operator, particularly for The UPS Store locations.

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 UPS ground lease properties or fee simple UPS 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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