Single-Tenant Net Lease Investment in Dallas-Fort Worth
Dallas-Fort Worth leads single-tenant net lease investment volume nationwide. Corporate relocations hit record levels in 2025. CVS, Dollar General, and Starbucks account for 40% of deals over $3M. Cap rates compressed 75 basis points year-over-year on investment-grade tenants. The 1031 exchange market stays red-hot — we're seeing multiple offers on anything with a Walgreens 15+ year lease. Your typical buyer wants 12+ years remaining term and won't touch anything with co-tenancy requirements.
Market Context
Cap Rate Range
5.2%-7.8% depending on tenant credit and lease term. Investment grade tenants (S&P BBB+ or higher) trade at 5.2%-6.1%. Regional credit tenants 6.5%-7.8%.
Current Vacancy
Sub-3% for quality single-tenant assets. Most vacancy comes from dark stores and lease expirations without renewal.
Rent Trend
Annual escalations average 1.8%-2.5%. Newer leases include 10-15% bumps every five years. Fast-casual restaurants seeing 3% annual escalations.
Absorption
Build-to-suit delivery averages 180 days. Existing single-tenant spaces lease within 90-120 days if properly priced.
Price Per Unit Trend
Average $180-$220 per square foot for retail, $90-$140 for quick-service restaurants, $200-$280 for banks.
Transaction Volume
$2.1B in single-tenant net lease sales in 2025, up 18% from 2024. Average deal size $4.8M.
Submarket Analysis
Plano/Frisco
5.4%-6.2% capVacancy
2.1%
Avg Rent (1BR)
$28-$35 PSF NNN
Strongest submarket for credit tenants. New Walmart Neighborhood Market lease signed at $32 PSF.
OM Tip
Include demographic heat map — this area has highest household incomes in DFW.
Las Colinas/Irving
5.8%-6.8% capVacancy
3.4%
Avg Rent (1BR)
$24-$31 PSF NNN
Corporate campus relocations driving demand. Three new bank branches under construction.
OM Tip
Highlight proximity to DFW Airport and corporate headquarters concentration.
Arlington/Grand Prairie
6.2%-7.1% capVacancy
4.2%
Avg Rent (1BR)
$22-$28 PSF NNN
Entertainment district expansion supports restaurant concepts. Rangers stadium area seeing growth.
OM Tip
Include traffic counts and visitor data from AT&T Stadium and Globe Life Field.
Fort Worth West
6.5%-7.8% capVacancy
5.1%
Avg Rent (1BR)
$19-$26 PSF NNN
Value play with population growth. Several national tenants expanding westward.
OM Tip
Show population growth projections — this area's growing fastest percentage-wise.
McKinney/Allen
5.6%-6.4% capVacancy
2.8%
Avg Rent (1BR)
$26-$33 PSF NNN
Family demographics perfect for drugstores and fast-casual. Limited supply keeps rents firm.
OM Tip
Include school district rankings and family formation data.
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What Your OM Needs to Address
Complete lease abstract with dark store provisions
Buyers won't bid without seeing exact dark store language. Include any co-tenancy requirements that could trigger rent reductions.
Data to Include
Full lease abstract, percentage rent thresholds, dark store provisions, assignment restrictions
Tenant financial performance and guarantor strength
Corporate guarantees make or break deals. Regional franchisees need three years of financials minimum.
Data to Include
Three years tenant financials, guarantor net worth statement, corporate guarantee terms, franchise disclosure documents if applicable
Rent escalation schedule and market comparison
Show how current escalations compare to recent comparable leases. Below-market rents hurt value even with long terms.
Data to Include
Year-by-year rent schedule through lease expiration, comparable lease rates within 2 miles, CPI escalation caps
Renewal options and expansion rights
Options add value but buyers discount heavily if renewal rates are below-market.
Data to Include
All renewal option terms, expansion rights, right of first refusal on adjacent space
Traffic counts and visibility analysis
Corner locations command 15-20% premiums. Include photos showing signage visibility from all directions.
Data to Include
Daily traffic counts on all adjacent streets, visibility photos, ingress/egress analysis, parking ratios
Property condition and deferred maintenance
Even with NNN leases, buyers want to see recent capital improvements and remaining useful life of major systems.
Data to Include
Recent capital improvements, roof age and condition, HVAC replacement dates, parking lot condition report
Investment Outlook
Short Term
Cap rate compression slowing but investment-grade tenants still see strong demand. 1031 exchange buyers keep pricing firm through Q4 2026. Watch for Federal Reserve policy changes affecting cost of capital.
Medium Term
Corporate relocations should continue through 2028. New restaurant concepts expanding into DFW create build-to-suit opportunities. Rising construction costs make existing assets more attractive.
Long Term
Population growth supports long-term fundamentals. Autonomous vehicle adoption could affect drive-through concepts by 2030. E-commerce continues pressuring traditional retail but service-oriented tenants remain stable.
Buyer Profile
1031 exchange buyers dominate sub-$10M market. REITs active on investment-grade tenants over $15M. High net worth individuals target 6.5%+ cap rates with regional credit tenants. Private equity focuses on sale-leaseback opportunities.
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