In this work, two series of AlGaN/GaN/AlN high electron mobility transistor (HEMT) heterostructures have been grown by molecular beam epitaxy on AlN bulk substrates. The effects of reduction in the GaN channel thickness as well as the AlGaN barrier thickness and composition on structural and electrical properties of the heterostructures have been studied. The material analysis involved high-resolution x-ray diffraction, atomic force microscopy, and cross-sectional transmission electron microscopy. In a first series of HEMT structures grown with an aluminum content of 30% in the AlGaN barrier, the channel downscaling results in a reduction in the GaN strain relaxation rate but at the expense of degradation in the mean crystal quality and in the electron mobility with a noticeable increase in the sheet resistance. An opposite trend is noticed for the three-terminal breakdown voltage of transistors, so that a trade-off is obtained for a 50 nm width GaN channel HEMT, which exhibits a sheet resistance of 1700 Ω/sq. with transistors demonstrating three-terminal breakdown voltage up to 1400 V for 40 μm gate to drain spacing with static on resistance R on = 32 mΩ cm 2 . On the other hand, a second series of HEMT structures with high aluminum content AlGaN barriers and sub-10 nm GaN channels have been grown perfectly strained with high sheet carrier densities allowing to preserve sheet resistances in the range of 880–1050 Ω/sq.