AA-rated credit on a passive ground lease under a grocery store, and what to watch on rent growth, from a NNN buyer’s broker with 225+ transactions.
A Walmart Neighborhood Market NNN property is a freestanding grocery store, averaging about 42,000 square feet, usually on several acres with its own parking field. Many trade as ground leases: you own the land, Walmart owns the building, and landlord duties are minimal. The lease is backed by Walmart Inc. (NYSE: WMT), rated AA by S&P, Aa2 by Moody’s and AA by Fitch, among the strongest credits in net lease. Walmart had 672 Neighborhood Markets in the U.S. as of October 2025, and in its July 2026 quarter grew revenue 5.9% to $187.9 billion, with U.S. comparable sales up 2.6%.
The trade-off is rent growth. Walmart ground leases often have flat rent during the base term, with increases only in the option periods. That makes the price you pay, the remaining term and the real estate the key questions on any Walmart 1031 exchange. Solid Investments FL has represented a buyer on a Walmart Neighborhood Market ground lease in Riverview (Tampa), Florida. See it in our track record. Our buyer representation is always free to you.
| Tenant | Usually Walmart Inc. or a Walmart subsidiary with a Walmart guarantee; confirm the tenant entity on each lease |
|---|---|
| Headquarters | Bentonville, Arkansas |
| Credit rating | Walmart Inc.: S&P AA / Moody’s Aa2 / Fitch AA (April 2026) |
| Stores | 672 Neighborhood Markets and 3,562 Supercenters in the U.S. (October 2025) |
| Recent performance | Q2 fiscal 2027 revenue $187.9B, up 5.9%; U.S. comparable sales up 2.6%; U.S. e-commerce up 24% |
| Building size | About 42,000 SF on average |
| Lease type | Often an absolute NNN ground lease; building leases also trade |
| Rent increases | Often flat in the base term, with increases (for example, 5%) in the option periods; varies by lease |
| Renewal options | Can be many 5-year options; one recent ground lease had 14 |
| Typical cap rate (2026) | About 4.5%–5.5%, depending on remaining term and location |
| Typical price range | About $5M–$12M |
Store counts, ratings and sales from Walmart filings and reports as of 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Walmart’s AA rating belongs to Walmart Inc. Confirm whether the tenant is Walmart Inc. or a subsidiary, and whether Walmart Inc. guarantees the lease.
Many Walmart ground leases have no rent increases in the base term. Check when the first bump happens and how much it is, and price the deal knowing your income may stay flat for years.
With flat rent, the remaining base term drives value. Check the expiration date and how many options are left.
A tenant like Walmart can close or relocate a store and keep paying rent. Check whether the lease requires the store to stay open and what happens to your rights if it goes dark.
Some Walmart leases give Walmart a right of first refusal or offer right on a sale. Read it before you sign; it can slow down your purchase or a future sale.
On a ground lease, you own the land. A large, well-located site near rooftops and traffic holds value for other grocers and retailers if Walmart ever leaves.
We’ve represented a buyer on a Walmart Neighborhood Market ground lease in Riverview (Tampa), Florida:
Grocery / Big Box
Solid Investments FL is a Florida NNN buyer's brokerage headquartered in Lakewood Ranch (Sarasota), serving investors across Florida and nationwide, with 225+ NNN transactions, including a Walmart Neighborhood Market ground lease in Riverview (Tampa), Florida. We help investors and 1031 exchange buyers find, underwrite and close Walmart properties nationwide, and our buyer representation is free.
As of 2026, Walmart Neighborhood Market NNN properties generally trade around 4.5% to 5.5% cap rates, depending on remaining lease term, rent increases and location.
The main, and really the only, drawback of a ground lease is that you can't depreciate the building, since you own only the land and land isn't depreciable. For investors who need depreciation to shelter income, a fee-simple property may be a better fit.
The tenant paid to build the store, so it has a strong vested interest in staying. Ground rents are typically at or below market, which gives you upside if the site is ever re-leased. And in most ground leases the building reverts to the landowner when the tenant vacates or the lease ends (every lease is different, so verify it in yours). That's why ground leases are viewed as safer investments and trade at lower cap rates.
As of April 2026, Walmart Inc. is rated AA by S&P, Aa2 by Moody's and AA by Fitch, among the strongest ratings of any NNN tenant. Confirm the tenant entity and any guarantee on each lease.
Often not during the base term. Many Walmart ground leases have flat rent for the initial term, with increases only in the renewal options. Check the rent schedule in each lease.
Walmart had 672 Neighborhood Markets in the U.S. as of October 31, 2025, along with 3,562 Supercenters. In 2026 Walmart planned to remodel more than 650 stores and open about 20 new ones.
Check who signs and guarantees the lease, the remaining base term, when rent increases start, whether the store must stay open, and any right of first refusal. Then look at the land itself: size, access and nearby rooftops.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ll help you weigh flat rent against AA credit and read the lease. Tell us your budget and timeline; our buyer representation is completely free.
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