What Is My NNN Property Worth?

If you own a triple-net (NNN) lease property, you probably have a rough sense of what it might be worth — but "rough" isn't good enough when you're deciding whether to sell, refinance, or hold. NNN property values can swing significantly based on factors most owners don't fully understand: remaining lease term, rent bump structure, guarantee type, and local comp activity.

This guide explains how NNN properties are valued, what drives the difference between a property trading at 5.0% and one trading at 6.5%, and how to get an independent data-backed valuation without calling a broker.

The Core Valuation Formula

NNN properties are valued using income capitalization — specifically, by dividing the property's annual net operating income (NOI) by the prevailing market cap rate for that asset type.

The formula is simple. What's hard is knowing the right cap rate — and that's where comparable sales data matters.

What Determines the Cap Rate for Your Property

The market cap rate for your specific property depends on five factors, roughly in order of importance:

• Tenant credit and guarantee type: A corporate-guaranteed lease backed by an investment-grade parent company (McDonald's, 7-Eleven, Dollar General) commands a materially tighter cap rate than a franchisee-guaranteed lease. The credit of the guarantor is the primary underwriting factor for NNN buyers.
• Remaining lease term: Every year of remaining term has value. A 20-year lease trades tighter than a 10-year lease from the same tenant. A 5-year lease trades significantly wider — buyers are pricing in re-tenanting risk at expiration.
• Rent bump structure: Fixed percentage bumps (10% every 5 years or 1.5–2% annually) compress cap rates compared to flat leases. Rent growth protects the buyer against inflation and increases the property's value over time.
• Location and demographics: Traffic counts (AADT), surrounding population density, and household income affect how likely the tenant is to renew. A Chick-fil-A on a high-traffic arterial in a dense suburban market trades tighter than the same brand in a rural location.
• Lease type: Absolute NNN (tenant responsible for all expenses including roof and structure) is valued higher than standard NNN or NN leases where the landlord retains some responsibilities.

Why Broker Valuations Are Often Wrong

The most common way NNN owners get a "valuation" is by calling a broker and asking what they think the property would sell for. This is problematic for several reasons:

• Brokers are incentivized to list, not to be accurate: A higher suggested list price wins the listing agreement. Overpriced properties sit on the market, then require price reductions — costing the owner time and signaling weakness to buyers.
• Broker opinions are not comp-based: A legitimate valuation is anchored in closed comparable sales — actual transactions with verified prices, cap rates, and lease terms. Broker opinions often reflect current asking prices or gut feel rather than closed data.
• The broker controls the information: When a broker provides a valuation and then lists the property, they control what comp data you see and how it's framed. You have no independent check on whether their number reflects the market.

The Five Factors REvaulti Scores to Position Your Property

The REvaulti Intelligence Report (RIR) scores each property across five weighted factors to produce an Asset Quality Score (0–100). That score positions the anticipated sale price within a comp-derived fair value range — tighter cap for higher-scoring assets, wider cap for lower-scoring assets.

The score determines where within the comp-derived fair value range the anticipated sale price lands. A score of 80/100 positions the property at 50% through the range — right at fair value. A score of 95/100 positions it in the upper end of the range. A score of 65/100 positions it in the lower end.

How Lease Term Affects Value — A Real Example

Lease term is the single variable most owners underestimate. Here's how remaining term affects value for a hypothetical Dollar General with $100,000 annual rent, assuming market cap rates in a typical Sun Belt market:

• 15 years remaining: ~5.50% cap → $1,818,000
• 10 years remaining: ~5.85% cap → $1,709,000
• 7 years remaining: ~6.25% cap → $1,600,000
• 5 years remaining: ~6.75% cap → $1,481,000
• 3 years remaining: ~7.50% cap → $1,333,000

From 15 years to 3 years remaining, the same property loses $485,000 in value — nearly 27% — with no change to the tenant, the rent, or the location. This is why timing matters. If your tenant has 10+ years remaining and you're considering a sale, you are at or near peak value for the current lease.

When to Get a Valuation

You don't need to be actively selling to benefit from knowing what your property is worth. Consider ordering an independent valuation if:

• Your tenant has 7–10 years remaining and you want to understand your timing options
• You're considering a refinance and want to validate the lender's appraisal
• You inherited the property and have never had an independent assessment
• A broker has approached you with an unsolicited offer to list — and you want an independent check on their number
• You're planning your estate and need current market values for each asset

Frequently Asked Questions

Is the REvaulti Intelligence Report an appraisal?
No. The RIR is an independent data product built from closed comparable sales and publicly available market data. It is not a licensed appraisal and does not carry the same legal weight as a FIRREA-compliant appraisal for lending purposes. For refinancing, you will need a licensed appraiser. For pre-listing valuation and pricing decisions, the RIR provides the same comp data at a fraction of the cost.

How accurate are the comparable sales in the RIR?
Comps are sourced from closed transaction data and matched by tenant, geography, guarantee type, and remaining lease term. All comps are actual closed sales — not asking prices. The accuracy of the fair value range depends on the availability and quality of comparable transactions in your market. High-confidence comp pools (recent, local, same tenant) produce tighter ranges. Wider markets or unusual tenants may produce wider ranges.

My broker told me my property is worth $X. How do I know if that's accurate?
Ask your broker to show you the closed comparable sales that support their number — not asking prices, not their opinion, but actual closed transactions with verified cap rates. If they can't or won't provide that data, their number is not comp-based. An RIR gives you an independent check built entirely on closed data.

Does the RIR tell me whether to sell?
No. The RIR tells you what the market data supports as a fair value range for your property. Whether to sell is a personal financial decision that depends on your tax situation, 1031 exchange plans, income needs, and portfolio strategy. The RIR gives you the data — the decision is yours.

Can a buyer order an RIR on my property?
Yes. The same RIR is available to both owners and buyers for any property on the platform. REvaulti does not customize or frame the report differently for either party. Both sides work from the same independent data.