NNN retail in Texas: cap rates and how to buy in Austin
Triple-net (NNN) retail is a favorite for passive, 1031-friendly income. Here's what counts as a good cap rate in Texas right now and exactly how the Austin buying process runs.
Example: Old Texas Plaza retail center, Lufkin — sold by SCORE Property Group.
On this page
What is a good cap rate for an NNN retail property in Texas?
As of early 2026, a good cap rate for NNN retail in Texas is roughly 5.5%–6.5% for a solid single-tenant property with a creditworthy national tenant and meaningful lease term remaining. Nationally, single-tenant net-lease retail averages about 6.45%; premium assets like investment-grade QSR and convenience stores trade tighter at ~4.0%–5.2%. Texas often prices below the national average thanks to strong growth and no state income tax.
"Good" is risk-adjusted, not just the highest number. A 7%+ cap usually signals weaker tenant credit, a short remaining term, or a secondary location — more yield for more risk. A 5% cap on a 15-year corporate-guaranteed lease is "good" in a different way: lower risk, durable income. What you're really pricing is the tenant's credit, the years left on the lease, the rent escalations, and the real-estate value if the tenant ever vacates.
| Asset type | Approx. cap rate |
|---|---|
| Single-tenant net-lease retail (national avg) | ~6.45% |
| Multi-tenant / non-investment-grade retail | ~6.5%–7.5%+ |
| Investment-grade QSR & convenience (premium) | ~4.0%–5.2% |
| Texas solid single-tenant (typical "good") | ~5.5%–6.5% |
How do I buy a triple-net (NNN) lease property in Austin?
Buy an NNN property in Austin by defining your criteria, lining up financing or 1031 timing, sourcing on- and off-market deals, underwriting each on tenant credit and lease terms, scrutinizing the lease and estoppel, completing due diligence, and closing. Because NNN buyers frequently use 1031 exchanges, identification and closing deadlines often drive the timeline.
- Set criteria — target cap rate, tenant credit, lease term, price, and whether this is a 1031 exchange replacement.
- Finance / 1031 timing — confirm debt terms or align with your exchange's 45-day and 180-day deadlines.
- Source — agent networks plus net-lease marketplaces for on- and off-market inventory.
- Underwrite — tenant credit, remaining term, rent escalations, and the fallback real-estate value if the tenant leaves.
- Read the lease — confirm what's truly "net": who pays taxes, insurance, maintenance, and roof/structure (true NNN vs. modified).
- Due diligence & close — estoppel, title, survey, environmental, and lender coordination.
NNN's appeal is passive, predictable income — but only if the lease is genuinely net and the tenant's credit holds. The deal is won in the lease language as much as the price. Many of our buyers pair an NNN purchase with a 1031 exchange; see how that works in Texas.
Looking for the right NNN deal in Austin?
We source on- and off-market net-lease properties and underwrite them on credit, term, and downside — not just headline cap rate.
Start your NNN searchSources
- The Boulder Group / Investment Grade — NNN Cap Rates 2026 Net Lease Market Report
- NNNTripleNet — Spring 2026: NNN Cap Rate Compression Has Begun