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The Triple Net (NNN) market is constantly changing as interest rates, financing, investor demand, cap rates, tenant performance and transaction activity shift. Highwater Partners, led by commercial real estate broker Mercedes Shaffer, provides market intelligence to help NNN property owners and investors understand what those changes may mean for property values, buying opportunities and selling decisions. Through Highwater Partners and the Commercial Real Estate Deal Room on YouTube, Mercedes combines commercial real estate market analysis with real-world NNN deal analysis—going beyond headline cap rates to examine the tenant, lease, income, location and underlying real estate.

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What Is Happening in the NNN Market?

There is no single NNN market. Pricing and investor demand can vary considerably based on property type, tenant credit, remaining lease term, location, rent, financing and the quality of the underlying real estate.  A long-term corporate lease in a strong market may attract a very different buyer pool than a shorter-term franchise-backed lease, even when the properties have similar advertised cap rates. Understanding the NNN market therefore requires looking beyond national averages and examining what investors are actually willing to pay for different combinations of income, risk and real estate.

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NNN Cap Rates, Interest Rates and Property Values

Cap rates are one of the clearest indicators of how the market is pricing NNN investments, but they should never be viewed in isolation. Interest rates, debt availability, investor return requirements, tenant credit, lease term and property quality can all influence pricing.

 

For property owners, the important question is not simply whether cap rates are rising or falling. It is how buyers are currently pricing your type of property, tenant, lease and location. Highwater Partners evaluates those factors together when helping owners understand how Triple Net properties are valued.

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What NNN Property Owners Should Watch

Owners considering a sale should pay particular attention to remaining lease term, upcoming tenant decisions, contractual rent increases, property condition and changes in the financing environment. These factors can affect buyer demand and sometimes make the timing of a sale as important as the broader market.

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Waiting is not automatically better simply because the market may improve. A property can lose marketability as its lease becomes shorter or a renewal decision approaches. Understanding both the broader market and the property's individual position within that market is essential when deciding whether to sell now, wait or address an issue before going to market.

 

What NNN Buyers Should Watch

Buyers should look beyond the advertised yield and ask what risks the cap rate is compensating them for. A higher return may reflect a shorter lease, weaker guarantor, above-market rent, specialized building, weaker location or greater uncertainty about the property's residual value.

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The strongest NNN investment decisions consider the tenant, lease and underlying real estate together. Market conditions matter, but so does the quality of the individual asset being purchased.

 

NNN Market Trends by Property Type

Market conditions can vary substantially across NNN sectors. Quick-service restaurants, coffee, convenience stores, grocery, pharmacies, medical, banks, automotive, car washes, childcare, fitness, pet and veterinary, home improvement, big-box retail, furniture, entertainment and industrial properties each have different buyer pools, lease structures and real estate characteristics.

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That is why the Highwater Partners market report is designed as a hub, with individual market reports and sector analyses providing deeper insight into specific areas of the NNN market rather than treating every property as part of one homogeneous asset class.

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Triple Net (NNN) Market Reports & Research

This hub is the central resource for Highwater Partners' ongoing NNN market intelligence. Individual reports will examine subjects such as quarterly NNN market conditions, cap-rate trends, transaction activity, financing, 1031 exchange demand and changes within specific property sectors.  As new reports are published, they will be added here so property owners and investors can follow the market over time and go deeper into the areas most relevant to their real estate decisions.

 

Beyond the Headline Numbers

Market statistics are useful, but they do not tell the entire story of an individual property.  Mercedes Shaffer's approach through Highwater Partners and the Commercial Real Estate Deal Room is to connect broader market conditions with the fundamentals of the actual real estate. That means examining not only where cap rates and interest rates are moving, but also how tenant strength, lease term, rent, location and residual real estate value can affect an individual buying or selling decision.

Beyond the Cap Rate. Beyond the Glossy Brochure.

 

Frequently Asked Questions

 

What is happening with NNN cap rates?

NNN cap rates change with interest rates, financing conditions, investor demand and property-specific risk. Different tenants, lease terms, property types and locations can trade at materially different cap rates even during the same market period, which is why broad national averages should be used as context rather than as a valuation for an individual property.

 

Are NNN property values going up or down?

There is no single direction for all NNN property values. Pricing depends on the tenant, remaining lease term, rent, location, financing environment and investor demand for that particular type of property. Individual asset quality can matter as much as broader market movement.

 

How do interest rates affect NNN property values?

Higher borrowing costs can reduce leveraged investor returns and place upward pressure on cap rates, while lower borrowing costs can support buyer purchasing power. The relationship is not automatic, however, because tenant credit, lease term, supply and investor demand also influence pricing.

 

Is now a good time to sell my NNN property?

The right timing depends on both market conditions and the individual property. Remaining lease term, upcoming renewals, rent increases, tenant performance, property condition and current buyer demand should all be considered before deciding whether to sell now or wait.

 

How do I know what my NNN property is worth?

NNN valuation begins with the property's net operating income and market-supported cap rate, but buyers also evaluate the tenant, guarantor, remaining lease term, rent structure, location and underlying real estate. Owners considering a sale can request a property-specific valuation from Highwater Partners rather than relying solely on broad market averages.

 

Where can I follow NNN market trends and deal analysis?

Highwater Partners publishes NNN market intelligence and educational resources for property owners and investors, while Mercedes Shaffer analyzes real-world commercial real estate opportunities through the Commercial Real Estate Deal Room. Together, these resources provide both broader market context and property-level analysis.

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Market Reports

2026 Q2 Market Report

 

About Mercedes Shaffer

Mercedes Shaffer is the Founder of Highwater Partners, a commercial real estate advisory firm specializing in Triple Net (NNN) investments, 1031 exchanges, multifamily investment properties, and single-tenant net lease real estate throughout the United States. Together with her brokerage platform, her team brings more than 250 years of combined commercial real estate experience and more than $18 billion in transaction experience.

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Mercedes advises private investors, family offices, developers, and institutional investors on the acquisition, disposition, valuation, and exchange of investment real estate. Her expertise includes tenant credit analysis, lease structure, cap rates and valuation, 1031 exchange strategy, market and location fundamentals, and the evaluation of risk in Triple Net investments.

In addition to her advisory work, Mercedes is also the creator and host of the Commercial Real Estate Deal Room, an educational platform focused on helping investors understand Triple Net real estate, 1031 exchanges, lease and tenant risk, valuation, and the transition from management-intensive properties into more passive real estate investments.

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Mercedes is known for an analytical approach that goes “beyond the cap rate” and the glossy brochure. Rather than evaluating an investment solely by its advertised yield or the name on the building, she examines the tenant, lease, underlying real estate, market fundamentals, exit strategy, and the investor’s broader objectives.

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Her philosophy is straightforward: there is no universally “best” Triple Net property—only an investment whose combination of real estate, income, risk, and long-term strategy may or may not be appropriate for a particular investor. That perspective guides her work across acquisitions, dispositions, 1031 exchanges, and long-term investment strategy.

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