Q2 2026 Net Lease Cap Rate Report

Interest rates, inflation, and the broader economy all shape net lease cap rates. Here’s what moved during Q2 2026:

• Interest rates: The 10-year Treasury yield trended upward over the quarter, rising from roughly 4.3% in early April to a peak near 4.7% in mid-May before easing back toward the 4.5%–4.6% range by late June. The 10-year Treasury yield rose from 4.33% on April 1 to a peak of 4.67% on May 19, before easing to about 4.40%–4.44% by late June (per Treasury.gov’s daily par yield curve data).
• Labor market: The U.S. unemployment rate stood at 4.2% in June 2026, improving slightly from 4.3% in March, alongside the addition of 57,000 nonfarm payroll jobs.
• GDP growth: The U.S. economy posted its fourth consecutive quarter of growth, with real GDP increasing at a 2.1% annualized rate in Q1 2026, following 0.5% growth in Q4 2025.
• Inflation: The Consumer Price Index (CPI) rose 4.2% year-over-year in May 2026, which the report attributes in part to the effects of ongoing foreign conflicts.
• Tax policy: Under the new OBBBA legislation, the Opportunity Zone program becomes permanent, with a new round of OZ designations beginning January 1, 2027 (updated every 10 years thereafter). The 2027 map is expected to include roughly 6,500 designated zones — meaningfully fewer than under the current framework — alongside enhanced incentives, including a 10% basis step-up for standard Opportunity Zones and a 30% step-up for qualifying rural zones, plus the ability to exclude eligible gains after a 30-year holding period. (This is general market and policy information, not tax advice — investors should consult a qualified tax advisor about how Opportunity Zone rules apply to their specific situation.) Investors already using — or considering — a 1031 exchange as part of their tax strategy may find these Opportunity Zone changes relevant too.