Q2 2026 Net Lease Cap Rate Report
B+E’s Q2 2026 Net Lease Cap Rate Report shows net lease cap rates held largely steady through the second quarter, with sector averages moving
Read More » The convenience store sector closed 2025 with rising inventory, modest cap‑rate expansion and renewed investor momentum following the reinstatement of permanent 100% bonus depreciation. Available inventory increased 27% since July, climbing from 302 to 384 properties by year‑end, while average cap rates edged up 5 basis points to 5.62%. Compared to year‑end 2024, inventory rose 24% (from 310 properties) and cap rates climbed 12 basis points from 5.50%.
Market Overview: Inventory Growth and Cap‑Rate Movement
Market inventory rose from 302 properties in July to 384 by year‑end, a 27% surge driven largely by reinstated bonus depreciation allowing assets placed in service after January 19, 2025 to be fully expensed immediately. Two‑thirds of the available properties (67%, or 257 assets) offer lease terms of 10 years or more and trade at an average cap rate of 5.50%, reflecting investor preference for long‑duration income streams.
Fuel vs. Non‑Fuel Assets: A 100+ Basis Point Spread
Fuel continues to drive pricing strength. Of the 384 properties currently on the market, only 11 do not offer fuel. Convenience stores with fuel average a 5.58% cap rate, while non‑fuel assets average 6.87% — a premium of more than 100 basis points for fuel‑based assets. Industry data also shows fuel revenue declined 5.7% in 2024 to $501.9 billion due to lower gas prices, prompting many operators to diversify revenue streams through food service, car washes and operational efficiencies.
Tenant Cap‑Rate Breakdown: 7‑Eleven, Wawa, Circle K & More
7‑Eleven
- 169 properties on the market (44% of total inventory)
- Average cap rate: 5.36%
- 64% of listings have 10 years or more remaining lease term
Cap rates expanded 10 basis points following a credit downgrade to A‑ by S&P and the termination of a proposed acquisition by Alimentation Couche‑Tard.
Wawa
- 39 properties on the market
- Average cap rate: 4.83%
- All listings offer 10+ years of remaining term (average 18.7 years)
Wawa continues to command the lowest cap rates in the sector, driven by long lease terms and ground‑lease structures.
Circle K
- 42 properties on the market
- Average cap rate: 5.60%
Portfolio optimization efforts and divestitures have contributed to Circle K inventory.
Additional Operators
- GPM: average cap rate 5.95%
- Murphy USA: average cap rate 5.13%
- Speedway: average cap rate 6.23%
This spread underscores the importance of credit strength, lease structure and remaining term in underwriting.
Geographic Trends: Where Inventory Is Concentrated
Texas leads the country with 73 convenience‑store properties on the market, followed by Florida (67) and California (23). Notable state‑level cap rates include Florida at 5.11%, Texas at 5.63%, Illinois at 6.28% and Wisconsin at 7.12%. Higher cap‑rate states generally reflect shorter lease terms, secondary markets or tenant‑specific exposure, while coastal Sunbelt markets continue to trade tighter.
What This Means for Net‑Lease Investors
The 2025 convenience‑store market shows moderate cap‑rate expansion, significant inventory growth and clear differentiation by tenant and lease term. While cap rates have expanded slightly, long‑duration leases continue to compress yields relative to shorter‑term assets. The combination of permanent bonus depreciation and evolving store formats suggests continued transaction activity into 2026. Investors should focus on remaining lease term, credit exposure, fuel vs. non‑fuel structure, geographic positioning and operator strategy.
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