New York City, NY

New York City's NNN market experienced its most dramatic five-year arc from 2020 to 2025. The pandemic initially created a buying opportunity not seen since 2009, as some owners sold at distressed cap rates of 5.5–6.5% in 2020. By 2021–2022, the recovery was rapid and decisive — institutional buyers absorbed available inventory aggressively, and cap rates compressed back to pre-pandemic levels. The 2022–2023 interest rate surge created a brief window of cap rate expansion to the 4.5–5.5% range, which sophisticated investors used to re-enter. By 2024–2025, cap rates tightened again to 3.5–5.25% as the Fed pivoted and institutional capital returned at full force. Drive-thru assets — rare in NYC but expanding in outer boroughs — trade at the sharpest premiums, reflecting their unique position in a market defined by walkability.