Asking vs. Sold: What the Negotiation Gap Reveals About NNN Demand

Most cap rate reports tell you what properties sold for. Far more revealing is the gap between what sellers ask and what buyers actually pay. That spread is a real-time read on negotiating power — which tenants buyers are fighting over, and which ones they’re discounting. We ran the numbers across our database, and the results expose exactly where demand is hot and where it’s cooling.

When Buyers Pay Up (Sold Below Asking)

For the most coveted tenants, buyers compete so aggressively that deals close tighter than the asking cap rate — meaning buyers pay even more than sellers ask:

McDonald’s: sold 38 bps below asking (asking 4.48%, sold 4.10%, n=20)
Chick-fil-A: sold 34 bps below asking (asking 4.70%, sold 4.36%, n=15)
Advance Auto Parts: sold 25 bps below asking (asking 7.48%, sold 7.23%, n=18)
Popeyes: sold 22 bps below asking (asking 5.98%, sold 5.76%, n=18)
Taco Bell and Wendy’s: sold ~10 bps below asking

When a tenant sells below its asking cap rate, it means demand is outrunning supply. Buyers see the listing, compete, and bid the price up (cap rate down). McDonald’s and Chick-fil-A lead the pack — no surprise, given their credit and sales strength. These are the assets buyers chase.

When Buyers Push Back (Sold Above Asking)

For other tenants, buyers demand a meaningfully higher yield than sellers want before they’ll commit — deals close wider than asking:

Bojangles: sold 129 bps above asking (asking 5.86%, sold 7.15%, n=9)
Walgreens: sold 79 bps above asking (asking 7.77%, sold 8.56%, n=98)
Panera Bread: sold 62 bps above asking (asking 5.39%, sold 6.01%, n=13)
Burger King: sold 58 bps above asking (asking 6.01%, sold 6.59%, n=38)
Dollar General: sold 49 bps above asking (asking 7.14%, sold 7.63%, n=214)
Dollar Tree: sold 48 bps above asking (asking 7.29%, sold 7.77%, n=31)

When a tenant consistently sells above its asking cap rate, it means sellers are starting high and buyers are negotiating them down on price. The wider the gap, the more pricing power has shifted to buyers. Walgreens’ 79-basis-point gap is a flashing signal of the credit concerns we’ve written about. Bojangles’ enormous 129-point gap (on a smaller sample) suggests sellers’ price expectations are well ahead of where buyers will actually transact.

Why This Matters More Than the Sold Number Alone

A sold cap rate tells you where the market cleared. The asking-vs-sold spread tells you which direction the pressure is coming from — and that’s far more useful when you’re deciding how to price your own property.

If you own a “buyers pay up” tenant (McDonald’s, Chick-fil-A, top QSR), you have pricing power. You can list aggressively and expect competition to hold or even improve your number. Don’t leave money on the table by underpricing.

If you own a “buyers push back” tenant (Walgreens, Dollar General, Dollar Tree, weaker franchise QSR), you need to price realistically from the start. Listing at an aggressive cap rate that the market won’t support just means a longer time on market and an eventual negotiation down to where buyers were always going to land. Meeting the market upfront gets the deal done faster.

This is exactly the kind of insight that separates a property that sells in 60 days from one that sits for six months. See current ranges on our NNN Cap Rate tracker or explore profiles for Chick-fil-A, Walgreens, and Dollar General.

What does it mean when a property sells below its asking cap rate?

It means buyers paid more than the seller asked — a sign of strong demand. In our data, McDonald’s and Chick-fil-A consistently sell 30-40 basis points below asking because buyers compete aggressively for these high-credit, high-sales assets, bidding the price up and the cap rate down.

Why do Walgreens and Dollar General sell above their asking cap rates?

Both tenants show a wide positive asking-to-sold spread (Walgreens +79 bps, Dollar General +49 bps), meaning sellers list at one price but buyers negotiate them down before closing. It reflects buyers demanding extra yield to compensate for credit or saturation concerns, which has shifted pricing power toward buyers for these tenants.

The Bottom Line

The asking-vs-sold gap is one of the most honest signals in net lease. Buyers paying above asking (McDonald’s, Chick-fil-A) tells you where demand is fierce. Buyers forcing prices down (Walgreens, Dollar General, Bojangles) tells you where pricing power has shifted and where realistic pricing matters most. Knowing which side of that line your property falls on is the difference between a fast sale and a stalled one.