NNN Properties
for Sale in Tennessee
Tennessee has no personal state income tax and active NNN markets in Nashville, Memphis, and Knoxville. The ESS Group helps California and national investors evaluate properties as their broker; individual tax outcomes depend on residency and other circumstances.
Why Tennessee is a Top NNN Investment State
Tennessee has no personal state income tax, but your state of residence may still tax Tennessee rental income. California residents may owe California tax on out-of-state investments. Your tax advisers should evaluate residency, ownership structure, and any applicable entity-level or other taxes.
Nashville's 22% 5-year population growth, corporate relocations (Oracle, Amazon, AllianceBernstein), and booming tourism economy drive consistent retail demand. QSR, dollar store, pharmacy, and auto parts NNN tenants are all aggressively expanding in the Nashville corridor.
Tennessee is one of the most landlord-friendly states in the country. Absolute NNN leases are strictly enforced. Low regulatory burden, no rent control, and a pro-business state government make Tennessee an ideal NNN investment environment.
Memphis (logistics and distribution hub), Knoxville (University of Tennessee anchor), and Chattanooga (tech corridor) all offer NNN cap rates 25–75 bps higher than Nashville with strong underlying retail fundamentals.
Tennessee's NNN market offers some of the best cap rates in the Southeast — 5.25%–7.0% depending on tenant and market. For investors seeking yield without sacrificing tenant credit quality, Tennessee frequently outperforms Florida and Texas on cash-on-cash returns.
Top Tennessee NNN Markets
We source NNN investment properties across all major Tennessee markets — off-market deals before they reach public portals.
Top NNN Tenants in Tennessee
The most active investment-grade NNN tenant categories we source across Tennessee markets.
Among the most active QSR tenants in Nashville. Corporate absolute NNN ground leases. Extremely limited investment sale inventory — Tennessee Chick-fil-A properties are among the most sought-after assets in the Southeast NNN market.
The dominant NNN category across Tennessee suburban and rural markets. Absolute NNN, 15-year primary terms, 5.75–7.0% cap rates. Accessible price points for $1M–$2M 1031 exchange scenarios.
Active ground lease and fee-simple deal flow across Nashville, Memphis, and Knoxville corridors. Corporate guarantee. Premier NNN hold quality at any price point.
Drive-through locations throughout the Nashville suburban corridor. Strong corporate guarantee. Development pipeline active in Nashville's highest-income zip codes.
Investment-grade necessity auto parts across Tennessee. Strong same-store performance backed by an aging vehicle fleet. Absolute NNN with 10–15 year primary terms.
Yum! Brands corporate guarantee. Value QSR with strong late-night and early morning traffic. Active development pipeline across Nashville and Knoxville suburban corridors.
1031 Exchange into Tennessee NNN
Tennessee NNN properties may be candidates for investors seeking a 1031 replacement property in Nashville, Memphis, or Knoxville. The ESS Group helps compare properties and coordinate acquisitions as your broker alongside your qualified intermediary. Your tax advisers should confirm exchange eligibility, residency, and federal and state tax treatment. A Tennessee purchase does not automatically eliminate California tax on rental income or deferred gains.
Learn about 1031 exchangesAbsolute NNN in Tennessee
Tennessee hosts active absolute NNN development in QSR, dollar store, pharmacy, and auto parts categories. Nashville's expansion pace means consistent sale-leaseback activity from developers — creating the kind of fresh, long-lease inventory that 45-day 1031 identification timelines require.
View all NNN categoriesTennessee NNN FAQ
Why do California investors buy NNN properties in Tennessee?
Investors may consider Tennessee for geographic diversification, property pricing, lease terms, and local tenant demand. Tennessee has no personal state income tax, but a California resident may still owe California tax on Tennessee rental income. Buying out of state does not by itself change residency or eliminate tax obligations. Your tax advisers should evaluate your circumstances.
What cap rates are available for Tennessee NNN properties?
Tennessee NNN cap rates range from 5.25% to 7.0% depending on market and tenant. Nashville primary market assets trade at 5.25–6.5%. Memphis and Knoxville secondary markets offer 5.5–7.0%. Dollar stores statewide offer 5.75–7.0%. These cap rates are among the best in the Southeast for investment-grade tenants.
Is Nashville's NNN market overheated?
Nashville primary market cap rates have compressed to 5.25–6.0% for premium QSR — below national averages. However, the suburban Nashville secondary market and other Tennessee cities (Memphis, Knoxville) still offer 5.75–7.0% cap rates with strong fundamentals. The ESS Group sources off-market Tennessee deals across the full market, not just prime Nashville.
Is Tennessee a good 1031 exchange destination?
A Tennessee investment property may fit your replacement-property search depending on your budget, lease criteria, financing, and timing. We help evaluate properties as your broker. Your qualified intermediary should confirm deadlines, and your tax advisers should confirm exchange eligibility, residency, and tax treatment rather than assuming a state-tax benefit from the property's location.
Access Tennessee NNN Deals
Before They Hit the Market
Tell us your criteria — tenant preference, cap rate target, price range, 1031 exchange timeline — and we'll match you with current off-market Tennessee NNN inventory.