Population
3,898,747
Growth (5Y)
+2.1%
Median Income
$74,000
Metro GDP
$1100B
Market Overview
Los Angeles is one of the premier NNN investment markets in the United States, commanding some of the tightest cap rates in the country at 3.75–5.5%. The sheer density of population — nearly 4 million in the city proper and 13M+ in the metro — creates irreplaceable real estate fundamentals. Drive-thru QSR assets, pharmacy anchors, and bank branches trade at cap rates that reflect institutional-grade demand. While California's high cost of land constrains new NNN supply, it simultaneously protects existing asset values.
Key Highlights
One of the world's top-5 metro economies — $1.1T GDP dwarfs most countries
Nation's largest port complex drives massive logistics and retail demand
Entertainment and tech sector fuels high-income renter and consumer base
Extremely tight NNN supply keeps cap rates compressed below national averages
How the Market Has Evolved (2020–2025)
From 2020 to 2025, the Los Angeles NNN market weathered pandemic disruptions and emerged stronger. Cap rates compressed from the 4.5–5.75% range in 2020 to their current 3.75–5.5% floor as institutional capital chased limited supply. Drive-thru assets — Starbucks, McDonald's, Chick-fil-A — saw the sharpest compression due to their pandemic-resistant operating models. The post-COVID e-commerce surge elevated logistics-adjacent retail, and QSR brands aggressively expanded drive-thru footprints across the San Fernando Valley and South Bay. By 2024–2025, Los Angeles NNN assets with 10+ years of lease term remaining were trading at premiums not seen since pre-2008.
Why Invest in Los Angeles
- 1Nation's most irreplaceable real estate market — demand always exceeds NNN supply
- 2Massive, high-income consumer base supports every major national retail tenant
- 3California's strict zoning creates near-zero new NNN supply, protecting existing valuations
- 4Proximity to institutional capital ensures deep buyer pools and excellent exit liquidity
Recent NNN Activity
"2025 has seen continued absorption of drive-thru QSR assets across the San Fernando Valley and South Bay at sub-4.25% cap rates. Pharmacy NNN deals (CVS, Walgreens) remain highly sought after with cap rates in the 4.75–5.5% range. Chase Bank branches in high-traffic corridors continue to trade at 4.0–4.75%."
NNN Snapshot
Cap Rate Range
3.75% - 5.5%
Price Range
$2.5M - $9.0M
Avg Lease Term
15 Years
Unemployment Rate
4.8%
Active NNN Tenants
McDonald'sStarbucksCVS PharmacyWalgreensChase Bank7-ElevenChick-fil-A
Major Employers
UCLA HealthCedars-SinaiSpaceXAmazonNetflixDisneyKaiser Permanente
Find NNN Properties in Los Angeles
Our advisors have exclusive, off-market NNN inventory in the Los Angeles market right now. Contact us to see what's available before it hits the public market.