DaVita NNN Cap Rates in San Antonio, TX: What Investors Are Paying Now

The San Antonio Medical Dialysis Landscape San Antonio has emerged as a primary target for net-lease investors seeking recession-resistant healthcare assets. As of mid-2026, the demand for DaVita (NYSE: DVA) properties remains robust, fueled by the city’s rapid population growth and its established reputation as a healthcare hub. Investors are increasingly viewing dialysis clinics not just as retail-adjacent assets, but as essential infrastructure with significant high-switching costs. DaVita’s dominance in the San Antonio MSA is bolstered by the presence of the South Texas Medical Center (STMC), one of the largest medical concentrations in the United States. This environment creates a synergy that supports long-term occupancy and tenant commitment. For a triple-net investor, this translates to lower vacancy risk and more predictable Cash-on-Cash returns. Current Cap Rate Compression and Pricing Trends Cap rates for DaVita properties in San Antonio are currently experiencing a bifurcated trend. While the broader NNN market has seen some upward pressure due to the interest rate environment, medical NNN assets have remained relatively shielded. Typical Pricing Metrics (June 2026) | Attribute | San Antonio Metro Range | | :--- | :--- | | Average Cap Rate | 6.15% - 6.65% | | Price Per Square Foot | $550 - $750 | | Typical Lease Term | 10 - 15 Years | | Rental Escalations | 10% Every 5 Years | Newly constructed build-to-suit locations with 15-year primary terms are trading at the tighter end of the spectrum (6.15% - 6.25%). Conversely, older vintage buildings or those with under seven years remaining on the lease term are seeing cap rates drift toward 6.75% or higher, as investors price in the potential for renewal negotiations or capital expenditures. The Texas Tax Advantage and 1031 Demand San Antonio continues to benefit from a significant influx of 1031 exchange capital originating from high-tax states like California and New York. Because Texas has no state income tax, the 'effective' yield for an out-of-state investor is often 50 to 100 basis points higher than a similar asset in a taxed jurisdiction. This tax-neutral environment, combined with San Antonio’s lower cost of entry compared to Austin or Dallas, makes DaVita assets here particularly attractive. Buyers are often willing to accept a lower nominal cap rate in exchange for the tax benefits and the reliability of a Fortune 500 guarantor. Credit Strength and Lease Mechanics DaVita Inc. maintains a non-investment grade credit rating that behaves like investment-grade (IG) in the eyes of many private lenders. Their status as a market leader in the dialysis space, which is characterized by a duopoly, provides a level of security that many retail tenants cannot match. Key Lease Considerations for Investors * Corporate Guarantee: Almost all San Antonio DaVita deals feature a corporate guarantee, rather than a subsidiary or franchisee guarantee. * Lease Structure: Most sites operate under a Double-Net (NN) or Net-Lease structure where the landlord is responsible for roof and structure. However, newer 'Absolute NNN' conversions are appearing in the market, shifting all CAM and tax responsibilities to the tenant. * Certificate of Need (CON): While Texas is not a strict Certificate of Need state for dialysis, the high cost of specialized plumbing, medical-grade HVAC, and water treatment systems makes these 'sticky' tenants. Moving a dialysis clinic can cost upwards of $2 million, providing the landlord with significant leverage during renewal. Local Submarket Analysis Different pockets of San Antonio offer varying risk profiles for DaVita investors: The North Loop 1604 Corridor Properties in Stone Oak or near The Rim command the highest prices. These areas have high median household incomes and superior real estate fundamentals. If DaVita were to ever vacate, the underlying land value and the ease of re-tenanting the building for a high-end medical or dental group provide a saf…