Large-format corporate leases at higher cap rates, and what to check on credit and real estate, from a NNN buyer’s broker with 225+ transactions.
A Kohl’s NNN property is a large department store, usually about 40,000 to 100,000 square feet, leased to Kohl’s on a long-term corporate lease. Most Kohl’s stores sit in strip and power centers; a smaller number are freestanding or in malls. Kohl’s owns many of its stores, leases others, and has about 240 stores on ground leases, where an investor owns the land and Kohl’s owns the building.
Kohl’s is a non-investment-grade tenant (S&P B+), and sales have been declining, with net sales down 4% in fiscal 2025. That is why Kohl’s properties trade at higher cap rates than investment-grade big boxes. The real estate matters as much as the tenant: Solid Investments FL helps buyers judge the location, the rent and the re-use potential of the building. Our buyer representation is always free to you.
| Tenant | Kohl’s corporate (no franchisees) |
|---|---|
| Parent company | Kohl’s Corporation (NYSE: KSS), Menomonee Falls, Wisconsin |
| Credit rating | S&P B+, Moody’s B2, Fitch BB- (not investment grade) |
| Stores | About 1,150 in 49 states; most in strip and power centers |
| Recent performance | Fiscal 2025 net sales of $14.8 billion, down 4%; still profitable, with net income of $272 million |
| Building size | Usually about 40,000–100,000 SF |
| Lease type | Corporate NNN; some are ground leases (you own the land, Kohl’s owns the building) |
| Remaining term | Many resale listings have shorter remaining terms with renewal options; check each lease |
| Typical cap rate (2026) | About 7%–8.5%, depending on term, rent and location |
| Typical price range | About $3.5M–$20M |
Store counts, sales and ratings from Kohl’s filings and agency ratings as of 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Kohl’s is rated B+ and sales are declining. Price the deal on the real estate and the rent, not just the brand.
Big boxes are easiest to re-lease when rent is at or below market. Compare the rent to nearby big-box and junior anchor rents.
A 40,000–100,000 SF box needs a big replacement tenant or a split into smaller spaces. Strong centers and busy corridors make that easier.
On a ground lease you own the land and usually get the building back at the end. Confirm what happens to the building in the lease.
Many resale Kohl’s have short remaining terms. Check the expiration, options and any notice deadlines.
In a shopping center, read any co-tenancy clauses and whether Kohl’s can close and keep paying rent.
Solid Investments FL is a Florida NNN buyer's brokerage headquartered in Lakewood Ranch (Sarasota), serving investors across Florida and nationwide, with 21+ years in net lease and 225+ transactions. We help investors and 1031 exchange buyers find, underwrite and close big-box and retail NNN properties nationwide, and our buyer representation is free.
As of 2026, Kohl's NNN properties generally trade around 7% to 8.5% cap rates, depending on remaining lease term, rent level and location. Newer, longer leases in strong locations trade at the lower end.
As of 2026, Kohl's is rated B+ by S&P, B2 by Moody's and BB- by Fitch. These ratings are below investment grade.
Kohl's has closed some underperforming stores, and its net sales fell 4% in fiscal 2025 to $14.8 billion. It still operates about 1,150 stores and remained profitable. Check how your store performs and how easily the building could be re-leased.
Some are. Kohl's reports about 240 stores on ground leases, where an investor owns the land and Kohl's owns the building. Others are land and building leases. Confirm the structure before you buy.
Kohl's NNN properties typically sell for about $3.5 million to $20 million, depending on store size, rent, land and lease terms.
It can be for buyers who want a larger, passive property and higher income, and who are comfortable with a non-investment-grade tenant. The best Kohl's deals have rent at or below market in strong retail locations.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ll help you weigh the credit, the rent and the real estate. Tell us your budget and timeline; our buyer representation is completely free.
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