T-Mobile NNN Cap Rates in San Antonio, TX: What Investors Are Paying Now

The San Antonio NNN Environment for Telecommunications Assets San Antonio has emerged as a primary target for net lease investors seeking a balance of yield and stability. Unlike the tighter spreads found in Austin, San Antonio offers a yield premium while maintaining robust population growth and a diversified economic base. T-Mobile assets within the San Antonio MSA currently command significant attention due to the tenant's continued dominance in the 5G rollout and its Investment Grade (IG) credit rating. Investors are particularly focused on the 'Texas Triangle' expansion. As San Antonio grows toward New Braunfels and San Marcos, the demand for high-visibility retail pads has intensified. T-Mobile typically occupies prime end-cap positions or freestanding pads near high-traffic anchors like H-E-B, Target, or Walmart, providing the underlying real estate intrinsic value that professional investors prioritize. Current Cap Rate Benchmarks and Pricing Drivers As of late 2026, the cap rate compressed for T-Mobile locations in San Antonio is dictated by lease term remaining and the specific lease structure. Most new-construction T-Mobile deals are structured as 10-year firm terms with 10% rental increases every five years. Cap Rate Tiers by Asset Quality | Asset Type | Estimated Cap Rate Range | Typical Lease Structure | | :--- | :--- | :--- | | Class A New Construction (10+ Year Term) | 6.15% - 6.30% | Absolute NNN | | Established Suburban (5-7 Year Term) | 6.45% - 6.65% | NN or NNN | | Value-Add / Short Term (< 3 Years) | 7.00% + | NN with Landlord Responsibilities | The yield spread between San Antonio and Tier 1 markets like Los Angeles or New York remains attractive for 1031 exchange buyers. These investors are moving capital from high-tax, low-growth states into Texas to capture the lack of state income tax and the favorable landlord-tenant laws that characterize the San Antonio market. Tenant Credit Profile: The T-Mobile Advantage T-Mobile US, Inc. (NASDAQ: TMUS) maintains an Investment Grade credit rating, which serves as a flight-to-safety mechanism during periods of economic volatility. In the San Antonio market, where local consumer spending is bolstered by a large military presence (Joint Base San Antonio) and a growing tech sector, T-Mobile locations demonstrate high sales-to-rent ratios. Institutional investors view T-Mobile as a 'recession-resistant' tenant. Mobile connectivity is no longer a luxury but a utility, ensuring that the tenant's Net Operating Income (NOI) remains stable even during inflationary cycles. Furthermore, T-Mobile's merger integration with Sprint is fully realized by mid-2026, resulting in a leaner corporate balance sheet and optimized store footprints, reducing the risk of store closures during the lease term. Submarket Variance within San Antonio Not all San Antonio zip codes are priced equally. The 'Far North Central' and 'Northwest' submarkets (e.g., The Rim, La Cantera, Stone Oak) command the lowest cap rates due to higher household incomes and superior demographics. Conversely, assets in the South or Southeast submarkets may trade at a 25 to 50 basis-point discount, offering higher cash-on-cash returns for investors less concerned with immediate residual appreciation. The Impact of Absolute NNN vs. NN Leases A critical factor in T-Mobile pricing is the lease structure. Many T-Mobile locations, particularly those in shopping centers, are structured as Double Net (NN), where the landlord retains responsibility for roof, structure, and sometimes parking lot maintenance. In San Antonio's current market, an Absolute NNN T-Mobile property—where the tenant handles all taxes, insurance, and maintenance—will trade at a premium. This 'armchair' investment style is the preferred vehicle for 1031 exchangers who wish to avoid management headaches. Financing Trends and the Yield Spread With interest rates stabilizing in mid-2026, the spread between T-Mobile cap rates and the 10-Year Treasury is a pri…