Investment-grade corporate credit in a small, affordable building, and why its NN lease deserves a careful read, from a NNN buyer’s broker with 225+ transactions.
A Sherwin-Williams NNN property is a small paint store, typically about 4,000 to 5,400 square feet, either freestanding or in a strip center, leased to The Sherwin-Williams Company (NYSE: SHW) on a corporate lease. Sherwin-Williams is the largest paint and coatings company in the world and is rated investment grade: BBB by S&P, Baa2 by Moody’s and BBB+ by Fitch. Every Paint Stores Group location is company-operated; there are no franchisees.
Sherwin-Williams leases are typically NN, and landlord responsibilities vary from lease to lease. New Sherwin-Williams leases are usually 10 years, rent structures vary (some leases have 10% increases every 5 years, while others stay flat for the base term with increases in the options), and while some leases only leave the landlord the roof and structure, others can also include the parking lot, HVAC replacement or even the storefront glass. Sherwin-Williams also closes underperforming stores, about 57 in the first half of 2026, even as it opens new ones. Solid Investments FL helps buyers weigh the credit against the term and lease structure on a 1031 exchange. Our buyer representation is always free to you.
| Tenant / guarantor | The Sherwin-Williams Company (corporate); confirm on each lease |
|---|---|
| Headquarters | Cleveland, Ohio; new global headquarters opened May 2026 |
| Credit rating | S&P BBB / Moody’s Baa2 / Fitch BBB+ (investment grade) |
| Stores | 4,841 company-operated Paint Stores Group stores in the U.S., Canada and Caribbean (June 2026) |
| Recent performance | Paint Stores same-store sales up 4.2% in Q2 2026 |
| Building size | About 4,000–5,400 SF |
| Typical lease term | 10 years on new leases, with multiple 5-year options |
| Lease type | Typically NN (double net): landlord covers roof and structure, and sometimes the parking lot, HVAC replacement or storefront glass |
| Rent increases | Varies by lease: some have 10% every 5 years, others are flat for the base term with increases in the options |
| Typical cap rate (2026) | About 5.25%–6.25%, depending on remaining term and landlord responsibilities |
| Typical price range | About $1.2M–$2.5M |
Store counts and sales from Sherwin-Williams Q2 2026 results; credit ratings as of its most recent bond offering. Cap rates and pricing reflect current market conditions and vary by deal.
Sherwin-Williams leases are typically NN, and landlord duties vary. Some cover only the roof and structure; others can add the parking lot, HVAC replacement or even the storefront glass. Read the lease line by line, inspect the building and budget for those costs before comparing cap rates with absolute NNN deals.
Sherwin-Williams leases differ. Some include 10% increases every 5 years; others keep rent flat for the full base term, with increases only in the renewal options. Compare the rent schedule carefully, since a lease with built-in increases is worth paying more for.
New leases are typically 10 years, a solid mid-length term, though shorter than the 15- to 20-year leases many NNN tenants sign. Stores with 5 to 7 years or less remaining trade at higher cap rates, so factor in the renewal risk.
Sherwin-Williams actively closes stores that fall below its profit targets, 57 in the first half of 2026. Look for signs of a strong store: contractor traffic, nearby growth and how long it has been open.
A 4,000- to 5,000-SF retail box is one of the easier spaces to re-lease. Compare the rent per square foot to nearby retail rents to see how well protected you are.
Investment-grade corporate credit with no franchisee risk is the main reason to buy. Confirm the lease is signed by The Sherwin-Williams Company.
Strong Sherwin-Williams stores sit near contractors and new housing. Growing suburbs and busy commercial corridors are the best bets.
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, with 225+ NNN transactions. We help investors and 1031 exchange buyers find, underwrite and close Sherwin-Williams properties nationwide, and our buyer representation is free.
As of 2026, Sherwin-Williams NNN properties generally trade around 5.25% to 6.25% cap rates. New 10-year leases with rent increases trade at the lower end, while flat leases, heavier landlord responsibilities and short remaining terms trade higher.
Yes. Sherwin-Williams is rated BBB by S&P, Baa2 by Moody's and BBB+ by Fitch, all investment grade. Every Paint Stores Group location is company-operated, so there is no franchisee risk.
Typically NN (double net). Landlord responsibilities vary by lease: some cover only the roof and structure, while others can also include the parking lot, HVAC replacement or the storefront glass. Always read the lease closely and budget for those costs.
New Sherwin-Williams leases typically run 10 years with multiple five-year renewal options. Rent schedules vary: some leases include 10% increases every five years, while others stay flat for the base term with increases in the options.
If you buy it fee simple, yes: you own the building and site improvements, which can be depreciated, and a cost segregation study can accelerate part of that. Confirm with your CPA.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ll help you find the right store and read the lease. Tell us your budget and timeline; our buyer representation is completely free.
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