Investment-grade corporate leases on larger, newer stores in growing rural and exurban markets, and what to check on a NN lease before you buy.
A Tractor Supply net lease property is a freestanding rural lifestyle store, typically about 20,000 square feet on 3 to 4 acres with a large fenced outdoor display area, leased to Tractor Supply Company on a long-term corporate lease. Tractor Supply is the largest rural lifestyle retailer in the country, with more than 2,400 stores in 49 states and investment-grade credit (S&P BBB / Moody’s Baa1). New stores are usually built to suit with 15-year leases and 5% rent increases every five years. Most are NN, meaning the landlord keeps responsibility for the roof, structure and parking lot, so reading the lease carefully matters. With price points of about $3 million to $7 million, Tractor Supply is a popular fit for larger 1031 exchanges.
Solid Investments FL has represented buyers on Tractor Supply properties, including a corporate Tractor Supply in Maryland. See our deals in our track record. Our buyer representation is always free to you.
| Tenant | Tractor Supply Company (Nasdaq: TSCO); corporate leases |
|---|---|
| Headquarters | Brentwood, Tennessee |
| Credit rating | S&P BBB / Moody’s Baa1 (investment grade, stable) |
| Stores | 2,400+ Tractor Supply stores in 49 states, plus Petsense pet stores |
| Typical lease term | 15 years on new build-to-suits, with multiple 5-year options |
| Lease type | Mostly NN: landlord covers roof, structure and parking lot. Absolute NNN deals exist but are less common |
| Rent increases | Usually 5% every 5 years; some leases have 10% |
| Typical cap rate (2026) | About 5.0%–6.5% on new leases; older stores and shorter terms trade higher |
| Typical price range | About $3M–$7M |
| Typical site | About 20,000 SF building on 3–4 acres with a fenced outdoor display area |
Credit ratings and store counts as of October 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Most Tractor Supply leases are NN: the tenant pays taxes, insurance and most maintenance, while you cover the roof, structure and parking lot. Check the roof warranty, building age and parking lot condition, and budget for those items over the lease term.
The occasional absolute NNN Tractor Supply puts every expense on the tenant and typically trades at a lower cap rate. Compare deals on what you’ll actually net after landlord costs, not just the headline cap rate.
New leases usually have 5% increases every five years, smaller than the 10% bumps common with many other NNN tenants. A lease with 10% bumps is worth paying more for.
Tractor Supply is rated BBB by S&P and Baa1 by Moody’s, both stable, and has steadily grown its store count. Leases are signed by the corporation, not a franchisee.
A large share of sales comes from everyday needs like animal feed, pet food and farm and ranch supplies, which customers buy in good times and bad. That repeat traffic supports store performance.
Tractor Supply stores sit in rural and exurban markets on larger sites. Look for a growing trade area, strong highway access and a site that could be re-leased or redeveloped, since land values can be lower than in suburban markets.
Most Tractor Supply properties sell fee simple, so you own the building and site improvements, and they are depreciable. The building itself is depreciated over 39 years, which can shelter much of your rental income. A cost segregation study goes further: it separates out parts of the property that can be written off much faster, and under current law that portion qualifies for 100% first-year (bonus) depreciation. Land is not depreciable.
A new Tractor Supply gives you a roughly 20,000 SF building plus extensive site work, paving and fencing, often several million dollars of depreciable basis.
Parking lot, paving, the fenced outdoor display area, site lighting, signage, landscaping and certain interior fixtures typically qualify as 5-, 7- or 15-year property instead of 39-year building.
A cost segregation study is a modest one-time cost. Your CPA can estimate the first-year benefit on a specific store before you commit, based on your purchase price and tax situation.
1031 exchange buyers: how much of your basis is eligible depends on how your exchange is structured. Depreciation recapture applies when you sell, passive-activity rules can limit who benefits, and state conformity varies. This is general information, not tax advice — confirm with your CPA and a cost segregation specialist before you buy.
We’ve represented buyers on Tractor Supply net lease properties, including this corporate store in Maryland:
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Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, with 21+ years in net lease and 225+ transactions, including Tractor Supply properties. We help investors and 1031 exchange buyers find, underwrite and close Tractor Supply properties nationwide, and our buyer representation is free.
As of 2026, new Tractor Supply leases generally trade between about 5.0% and 6.5% cap rates. Absolute NNN leases and stores in stronger markets trade at the lower end, while NN leases with more landlord responsibility, older stores and shorter remaining terms trade higher.
Most Tractor Supply leases are NN, meaning the tenant pays taxes, insurance and most maintenance while the landlord covers the roof, structure and parking lot. Some are absolute NNN with no landlord responsibilities. Always confirm exactly which expenses are yours before you buy.
As of October 2026, Tractor Supply Company is rated BBB by S&P and Baa1 by Moody's, both investment grade with stable outlooks.
New Tractor Supply leases typically run 15 years with multiple 5-year renewal options. Rent usually increases 5% every five years, though some leases have 10% increases.
Most new Tractor Supply properties sell for about $3 million to $7 million, depending on store size, location and lease terms. A typical new store is about 20,000 square feet on 3 to 4 acres.
For many investors, yes. Tractor Supply offers investment-grade corporate credit, need-based sales and newer buildings at price points that suit larger exchanges. Buyers should account for landlord roof, structure and parking lot responsibilities on NN leases and the smaller 5% rent increases.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
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