NNN Properties
for Sale in Tennessee
Tennessee has zero state income tax, Nashville is one of the fastest-growing cities in America, and the state hosts some of the best cap rates in the Southeast. The ESS Group gives California and national investors exclusive access to off-market Tennessee NNN inventory.
Why Tennessee is a Top NNN Investment State
Tennessee has no personal income tax on wages or investment income. For California investors especially, Tennessee NNN rental income is subject only to federal taxation — a meaningful yield improvement vs. properties in high-tax states.
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 is a premier 1031 exchange destination for California investors — zero state income tax means California rental income converted to Tennessee NNN income immediately eliminates state tax exposure. Nashville's growth trajectory provides long-term real estate appreciation alongside passive NNN income. The ESS Group works with California investors specifically on TN NNN 1031 exchange scenarios.
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?
Two primary reasons: (1) Tennessee has zero state income tax, so California investors who buy TN NNN properties pay federal tax only on rental income — eliminating California's 13.3% top marginal rate on real estate income. (2) Nashville's population growth and corporate relocation activity make TN NNN real estate a compelling long-term appreciation play alongside the passive income.
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?
Excellent, particularly for investors from high-income-tax states (California, New York, New Jersey). The zero state income tax benefit, Nashville growth story, and competitive cap rates make Tennessee a compelling 1031 replacement property market. Nashville NNN properties are increasingly sought as terminal 1031 holds.
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.