A tenant's credit rating plays a key role when evaluating a netlease property. High credit tenants such as Walgreens, CVSand McDonald'shave for a long time been the gold standard of the net leasecommunity. Likewise, national bank tenants like BB&Tand PNChave always been viewed as secure investments. This security isparamount to many net lease investors, who often intend on theincome stream generated to bolster a retirement or leave to anheir. For this reason, credit ratings have been the quickest andeasiest way of assessing the secuirty of the tenant.
However, there are many unrated tenants which are almostconsidered to be de-facto credit worthy. Tenants like Wawa andChic-fil-A, which are both private, draw heavy investor interestand can trade at cap rates as low as high credit rated tenants.It's important to have as much information about potentialinvestment options as possible.
To view current credit ratings & metrics for both rated andunrated net lease tenants, check out our Quarterly Credit Rating Report.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
