Real expansion is happening in net lease right now with a focus on gas convenience, drive-thru coffee, fitness, and QSR. Tenants across all these categories are actively adding locations in 2026. But a public ticker on the door doesn't tell you who's actually on the hook if the tenant defaults and that answer changes everything about how you underwrite the deal.

In this episode, Karly Iacono breaks down net lease tenant credit into three buckets every investor needs to underwrite differently:

Bucket 1: the lease sits directly with a publicly rated parent. The credit is transparent and Wall Street prices it every day.

Bucket 2: no public rating, no SEC filings but the lease still sits with a real corporate entity. Some of the strongest credits in net lease live here.

Bucket 3: the one that catches investors off guard. The brand is publicly traded and expanding fast, but the franchisor is not your tenant. The franchisee is. And several of the biggest names in this bucket have stated explicitly they do not guarantee the lease.

The takeaway: match your diligence to the bucket, not the brand's fame.

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The opinions expressed in this video are those of Karly Iacono and her guests and may not represent those of CBRE or its affiliates. This content is for educational purposes only and does not constitute legal, financial, or investment advice. Please consult a qualified attorney licensed in your state and a licensed financial advisor before making any investment or legal decisions. This video may reference trade names or trademarks of various third parties; all product and company names are trademarks™ or registered® trademarks of their respective holders, and any such reference is solely for illustrative purposes and does not imply any affiliation with, endorsement by, or association of any kind between such holders and CBRE or Karly Iacono.

Net Lease Tenant Credit Decoded: 3 Buckets Behind 2026's Biggest Expansions

Commercial Real Estate Now

Net Lease Tenant Credit Decoded: 3 Buckets Behind 2026's Biggest Expansions