Starbucks NNN Properties for Sale
Investment-grade corporate leases. Drive-thru premiums. Starbucks is the gold standard of QSR NNN investing — predictable rent from a brand that generates $36B+ annually and continues expanding into drive-thru-only formats.
4.0%–5.25%
Cap Rate Range
$2.5M–$5.5M
Typical Price
10–15 years
Lease Term
16,000+
US Locations
BBB+ (S&P)
Credit Rating
$36B+
Annual Revenue
Why Invest in Starbucks NNN Properties?
The investment thesis behind Starbucks as a single-tenant NNN asset.
Drive-Thru Premiums — Highest-Value Starbucks Format
Starbucks drive-thru locations command lower cap rates (and higher prices) than their café-only counterparts. Drive-thrus generate 30–50% more revenue per location, making the tenant more profitable and the lease more secure. The ESS Group focuses on sourcing drive-thru Starbucks NNN deals.
Strong Corporate Guarantee
Starbucks Corporation (NASDAQ: SBUX) guarantees every corporate-owned location's lease. With BBB+ credit rating and $36B+ in annual global revenue, the financial backing behind your rent check is institutional-grade.
Built-In Rent Escalations
Starbucks NNN leases typically include 10% rent bumps every 5 years or 1–2% annual increases. Over a 10–15 year term, this creates meaningful rent growth that compounds your return and increases the property's value at resale.
Prime Real Estate Locations
Starbucks' site selection team is among the best in retail. Their locations sit at high-traffic intersections, near major employment centers, and adjacent to complementary retail. These location characteristics make the underlying real estate — not just the lease — valuable.
Starbucks NNN — Strengths & Considerations
An honest investor's view of what makes Starbucks work — and what to watch for.
Investor Strengths
- Investment-grade BBB+ corporate guarantee
- Drive-thru locations generate premium sales volumes
- Strong brand loyalty — 30M+ loyalty program members
- Built-in rent escalations every 5 years
- Prime corner locations with strong underlying real estate value
- Global expansion reduces closure risk from domestic slowdown
- Excellent resale market — high investor demand
Considerations
- Lower cap rates (4.0%–5.25%) vs. other NNN tenants
- Higher price point ($2.5M–$5.5M) requires larger 1031 or capital base
- Shorter initial terms (10–15 years) vs. Dollar General or Walgreens
- Some locations are licensed vs. corporate — verify guarantee structure
Starbucks as a 1031 Exchange Replacement Property
Starbucks NNN properties are a premium 1031 exchange destination for investors seeking investment-grade credit, prime locations, and strong appreciation potential. The $2.5M–$5.5M price range aligns well with California investment property 1031 exchanges. Drive-thru Starbucks in particular hold value extremely well on resale.
Learn More About 1031 Exchange into NNNStarbucks NNN — Common Investor Questions
What cap rates are available on Starbucks NNN properties?
Starbucks NNN cap rates range from approximately 4.0% to 5.25% depending on location, format (drive-thru vs. café), and remaining lease term. Drive-thru locations in primary markets like Phoenix, Dallas, and Atlanta trade at 4.0%–4.5%. Non-drive-thru or secondary market locations offer 4.75%–5.25%.
Are Starbucks NNN leases corporate-guaranteed?
Corporate-operated Starbucks locations are guaranteed by Starbucks Corporation. Licensed locations (universities, airports, hotels) operate under a different structure and are not appropriate for NNN investment. The ESS Group only presents corporate-guaranteed Starbucks NNN properties to investors.
How does a Starbucks drive-thru differ from a café-only location as an NNN investment?
Drive-thru Starbucks generate significantly higher sales volume — often $1.5M–$2.5M+ annually per location vs. $800K–$1.2M for café-only. Higher sales volume reduces closure risk and typically commands a premium price (lower cap rate). For NNN investors, drive-thru locations are almost universally preferred.
Is Starbucks good for a 1031 exchange?
Yes, particularly for investors exchanging out of mid-to-large California properties. The $2.5M–$5.5M price range aligns with many residential rental and commercial 1031 scenarios. Starbucks also holds resale value well, which matters if you anticipate a future exchange out of the asset.
See Current Starbucks
NNN Inventory
Tell us your investment criteria — budget, cap rate target, and 1031 timeline — and we'll share current off-market Starbucks NNN deals that match.