CalculateRealEstateROI

Commercial Real Estate

Credit Tenant

Tenant with investment-grade public credit rating backing lease obligation.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Lease cash flow is effectively bond-like — cap rates compress accordingly.

Examples

  • FedEx, Walmart, Amazon-leased properties trading at 5–6% caps.

Common mistakes

  • Confusing franchisee leases with corporate-guaranteed leases.