Sherwin-Williams NNN
lease analysis.
Sherwin-Williams is the largest paint retailer in the United States and a widely-traded NNN tenant. The company operates thousands of stores targeted at professional contractors and DIY consumers, often in smaller pads adjacent to industrial / contractor areas. Stable same-store sales, investment-grade credit, and relatively long lease terms make Sherwin-Williams NNN a frequently-traded category.
Quick reference · Sherwin-Williams
- Legal entity
- The Sherwin-Williams Company
- Parent
- The Sherwin-Williams Company (SHW)
- Credit profile
- Investment-grade (BBB+/A-). Dominant paint and coatings retailer with 4,800+ stores in the Americas.
- Typical lease
- NNN with corporate guarantee; sale-leaseback common for the company's own stores.
- Typical term
- 10–15 years initial with 5-year options.
- Rent bumps
- Varies; 8–10% every 5 years typical.
- Prototype size
- ~4,000–6,000 SF on a 0.5–1.0 acre pad, often adjacent to industrial / contractor trade areas.
- Cap rate band
- 5.75–6.75% (2026)
About Sherwin-Williams as a NNN tenant
Sherwin-Williams is the largest paint retailer in the United States and a widely-traded NNN tenant. The company operates thousands of stores targeted at professional contractors and DIY consumers, often in smaller pads adjacent to industrial / contractor areas. Stable same-store sales, investment-grade credit, and relatively long lease terms make Sherwin-Williams NNN a frequently-traded category.
How Sherwin-Williams structures its NNN leases
Sherwin-Williams NNN leases carry corporate guarantee from the parent. Most are triple net with tenant responsibility for taxes, insurance, CAM, and typically structural items depending on vintage.
Store specs and site profile
Prototype is 4,000–6,000 SF with a paint-retail storefront, contractor-service counter, and small warehouse area. Sites are typically 0.5–1.0 acre with dedicated parking.
Red flags on a Sherwin-Williams NNN deal
- Short remaining primary term (under 5 years)
- Tertiary market with declining construction and contractor activity
- Competing paint retailer (Benjamin Moore, PPG) in the immediate trade area
- Basis materially above replacement cost
What to underwrite before buying a Sherwin-Williams property
- Remaining primary term and options
- Trade-area contractor and DIY demographic density
- Proximity to competing paint retailers
- Basis vs. replacement cost and recent comparable sales
Frequently asked questions
Is Sherwin-Williams a credit tenant?
Yes. Sherwin-Williams is investment-grade with durable paint and coatings market leadership. The corporate guarantee structure on NNN leases is well-regarded by CRE investors.
What cap rate is typical for Sherwin-Williams NNN?
In 2026, Sherwin-Williams NNN with long primary term in primary/secondary markets trades at 5.75–6.50% cap rates. Shorter-term stores trade wider, typically 6.75–7.50%.
Using Sherwin-Williams in a 1031 exchange
Get the full 1031 Playbook.
Subscribe to The Upleg and we'll email the link — timelines, QI checklist, state clawback rules, and tenant-specific replacement strategies. Free.