Tractor Supply is the largest rural lifestyle retailer in the US with 2,435 stores and a BBB investment-grade rating from S&P. It leases roughly 97% of its locations and is opening 100 new stores in 2026 against a long-term target of 3,000. Indicative cap rates 6.00-7.10% depending on remaining term.

Silber trade data: our closed Tractor Supply transactions have averaged a 5.96% cap rate on average rent of $334,496 and an average price of $5,758,625.

Pros:

• Investment-grade BBB credit with a stable outlook, affirmed by S&P in December 2025
• Corporate guarantee on the lease — no franchisee credit to underwrite
• Leases ~97% of its stores, so the new-build and sale-leaseback pipeline is continuous
• Rural and small-town trade areas with little direct big-box competition
• Needs-based categories — livestock feed, animal health, fencing, propane — that resist e-commerce
• Long initial terms of 10-20 years with two to four 5-year options

Cons:

• Most leases are Double Net — landlord typically retains roof and structure
• Large 19,000-22,500 SF box on 3-5 acres; re-use depends on the trade area
• Rent bumps of 10% every 5 years are modest — this is a yield play, not a growth play
• Rural locations mean thin buyer pools on resale in the weakest markets
• Pet segment softness has pressured comps recently
• Values move with interest rates given the yield-driven buyer base

Tractor Supply is the largest rural lifestyle retailer in the United States, operating 2,435 Tractor Supply stores and 206 Petsense by Tractor Supply stores as of March 2026. The company carries a BBB investment-grade rating from S&P with a stable outlook, affirmed in December 2025, and guarantees its leases at the corporate level. For a net-lease buyer that combination — investment-grade credit, corporate guarantee, and a needs-based rural customer — is the core of the appeal.

The company leases approximately 97% of its stores, which is what makes it a reliable source of net-lease product. Store leases typically run 10 to 20 years initially with two to four renewal options of five years each, and escalations of roughly 10% every five years. The standard prototype is a 19,000-22,500 SF box on three to five acres, with an outdoor yard and drive-through pickup that pushes land requirements well above a typical junior box. Most Tractor Supply leases are structured Double Net, meaning the landlord generally retains roof and structure — a meaningful difference from the absolute-NNN product many buyers assume they are getting.

Growth remains the story. Tractor Supply opened a record 40 stores in the first quarter of 2026, plans 100 for the full year, and has stated a long-term target of 3,000 stores. Sale-leasebacks are a regular feature of the market — ExchangeRight alone has assembled a portfolio of more than 100 Tractor Supply assets. Softness in the pet category has weighed on comparable sales, and the company guided fiscal 2026 to net sales growth of 4-6% with comps of 1-3%.

Across the trades we have handled, Tractor Supply has averaged a 5.96% cap rate on an average rent of roughly $334,600 — ahead of the broader national average rent near $270,000, reflecting the larger prototype and newer construction in the deals we see. Nationally, indicative cap rates run about 6.15% on 15 years of remaining term, 6.50% at 10 years, and 6.95% at 5 years.

Frequently Asked Questions

Is Tractor Supply a good NNN tenant?
Yes for income-focused buyers. It is investment-grade BBB, corporate-guaranteed, leases 97% of its stores, and is still growing toward a 3,000-store target. The trade-offs are a Double Net structure on most leases, modest 10%-per-5-year bumps, and a large rural box whose re-use depends on the trade area.

Are Tractor Supply leases absolute NNN?
Usually not. Most are structured Double Net, with the landlord retaining roof and structure. Always confirm the specific lease — this is the single most common misunderstanding on Tractor Supply offerings.

What drives the cap rate spread on Tractor Supply?
Remaining term above all. Indicative pricing runs roughly 6.15% at 15 years, 6.50% at 10 years, and 6.95% at 5 years. Trade-area quality and whether the lease is a recent sale-leaseback or an older assignment account for most of the rest.

Silber Investment Properties brokers Tractor Supply net-lease properties nationwide. Call our New York or California office to discuss buying or selling a Tractor Supply.