What is investment-grade tenant?
A tenant with a strong credit rating (e.g., BBB-/Baa3 or higher) whose reliable rent payments lower income risk and can support a lower cap rate, especially in single-tenant net-lease properties.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.