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

The San Antonio industrial market has transitioned into a mature institutional hub, with FedEx NNN assets serving as a primary benchmark for triple-net logistics pricing. As of mid-2026, the intersection of South Texas logistics demand and the broader interest rate environment has created a unique pricing window for 1031 exchange investors and REITs seeking yield stability without the management intensity of multi-tenant retail. The San Antonio Submarket Dynamics San Antonio's geographic position makes it a critical node for 'last-mile' and 'middle-mile' logistics. The North San Antonio submarket, particularly assets near the I-35 and Loop 1604 interchange, commands the lowest cap rates due to higher land values and density. Conversely, larger distribution hubs in the South or East submarkets, near I-10, offer slightly higher yields but benefit from proximity to Port San Antonio and international trade routes. Institutional investors look at San Antonio differently than Dallas or Houston. While the latter are global distribution ports, San Antonio serves as the gateway to the Rio Grande Valley and Mexico, making FedEx Ground and Express facilities here high-utilization assets. A vacant FedEx facility in this market is rarely stagnant, which compresses the risk premium investors demand. FedEx Lease Structures and Pricing Impact Not all FedEx leases are created equal, and the market pricing reflects these nuances in the lease structure. Most FedEx Ground assets utilize a double-net (NN) or modified NNN structure where the landlord remains responsible for roof and structure. However, newer build-to-suit projects in the San Antonio MSA are increasingly utilizing absolute NNN terms, which are trading at a 15-25 basis point premium (lower cap rate). | Facility Type | Typical Cap Rate Range | Lease Structure | Typical Term Remaining | | :--- | :--- | :--- | :--- | | FedEx Ground (Distribution) | 5.75% - 6.15% | NN or NNN | 7 - 12 Years | | FedEx Office (Retail/Service) | 6.25% - 6.75% | NNN | 3 - 5 Years | | FedEx Ship Center (Mission Critical) | 5.50% - 5.85% | Absolute NNN | 10+ Years | | FedEx Freight (Truck Terminal) | 6.00% - 6.40% | NN | 5 - 10 Years | Investors are currently paying a premium for facilities that include a high percentage of van-high loading docks and significant trailer parking, as these features are difficult to replicate under current San Antonio zoning ordinances. Credit Strength and Yield Spreads FedEx Corp (NYSE: FDX) maintains an investment-grade (IG) credit rating, typically S&P BBB or higher. In the current market, the spread between the 10-Year Treasury and San Antonio FedEx cap rates has settled between 150 and 200 basis points. While this spread is narrower than the 2021-2022 era, the lack of supply in the Texas market keeps pricing aggressive. For 1031 exchange buyers, the appeal lies in the corporate guarantee. Unlike a franchise-backed QSR, the FedEx corporate signature provides a level of security that allows for high-leverage financing, even when debt service coverage ratios (DSCR) are tight. Local San Antonio lenders remain bullish on these assets, often offering slightly better terms for properties located within the Bexar County limits due to the diversified local economy. Critical Factors Influencing Value Beyond the cap rate, several regional factors influence what an investor is willing to pay for a San Antonio FedEx asset: * Lease Coverage Ratio: Investors are scrutinizing the specific store or facility performance. A high-volume Ground hub in Schertz or Selma will trade at a sub-6% cap, whereas a smaller satellite facility might see 6.25%. * Rent Escalations: Most older FedEx leases are flat, which is a disadvantage in an inflationary environment. Modern leases with 2% annual bumps or 10% increases every five years are seeing significant bidding wars. * Alternative Use Value: With industrial land in San Antonio becoming scarce, the underlying land value (the 'basis') is a hedge. Assets…