NNN Properties
for Sale in Texas
Texas has no personal state income tax, 30M+ residents, and an active net lease development market. The ESS Group helps investors evaluate Texas NNN properties as their broker; individual tax outcomes depend on residency and other circumstances.
Why Texas is a Top NNN Investment State
Texas has no personal state income tax, but owning a Texas property does not automatically remove tax obligations in your state of residence. California residents may still owe California tax on out-of-state rental income. Ask your tax advisers to evaluate residency, ownership structure, and applicable taxes.
Texas adds more new residents in raw numbers than any other state — over 500,000 per year. Every new household increases demand at QSR, dollar store, auto parts, and pharmacy NNN tenants.
Dallas, Houston, and Austin are among the top 10 US metro economies. Three separate investment-grade markets in one state means abundant deal flow at multiple price points and cap rates.
Texas is one of the most landlord-friendly states in the country. Absolute NNN leases are strictly enforced. No rent control, low regulatory burden, and fast eviction processes.
Texas' economy is diversified across energy (Houston), technology (Austin), and financial services (Dallas). NNN tenants benefit from broad economic resilience across sectors.
Top Texas NNN Markets
We source NNN investment properties across all major Texas markets — off-market deals before they reach public portals.
Top NNN Tenants in Texas
The most active investment-grade NNN tenant categories we source across Texas markets.
One of the most sought-after NNN assets in Texas. Corporate guarantee, 15–20 year leases, sub-5% cap rates in DFW. Extremely limited supply — massive investor demand.
Ground leases and fee-simple. Corporate-guaranteed absolute NNN. Texas has 1,000+ locations creating consistent off-market deal flow.
Texas-dominant QSR brand. Institutional-quality absolute NNN leases with long terms. High barrier to entry makes these assets scarce and liquid.
The most prolific NNN category in Texas suburban markets. Absolute NNN, 10–15 year terms, 5.5–6.75% cap rates. Perfect 1031 replacement property.
Texas is 7-Eleven's largest state market. Long-term absolute NNN leases with strong same-store sales and corporate guarantee.
Investment-grade credit, absolute NNN, 10–15 year primary terms. Thrives in Texas heat — strong same-store sales in auto parts category.
Freestanding pharmacy NNN on high-traffic Texas corners. 15–25 year primary terms, investment-grade credit, long-term income stability.
Drive-through locations command premium pricing in Austin and Dallas. Corporate guarantee, extremely liquid — active institutional and private buyer market.
1031 Exchange into Texas NNN
Texas NNN properties may be candidates for a 1031 replacement-property search. The ESS Group helps source and evaluate 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. Buying in Texas does not automatically eliminate California tax on rental income or deferred gains.
Learn about 1031 exchangesAbsolute NNN in Texas
Texas hosts some of the largest concentrations of absolute NNN tenants in the country. Chick-fil-A, McDonald's, Whataburger, Dollar General, and 7-Eleven all execute new construction and sale-leaseback deals constantly across Texas markets, creating consistent off-market deal flow for NNN buyers.
View all NNN categoriesTexas NNN FAQ
What cap rates are available for NNN properties in Texas?
Texas NNN cap rates range from 4.5% to 6.75% depending on the market and tenant type. Austin commands the most compressed cap rates (4.5–5.75%) due to tech migration and land scarcity. Dallas/Fort Worth trades at 4.75–6.5%. Houston offers the best cap rates in the state at 5.25–6.75%. Dollar stores and auto parts typically offer 5.5–6.75% statewide.
Does Texas have a state income tax on NNN rental income?
Texas has no personal state income tax, but that does not mean rental income is subject only to federal tax. Your state of residence may tax out-of-state income, and other taxes may apply depending on your ownership structure. California residents may still owe California tax on Texas rental income. Your tax advisers should confirm your residency and applicable tax treatment.
Can I do a 1031 exchange into a Texas NNN property?
A Texas investment property may qualify as replacement property, depending on your exchange requirements and circumstances. We help source and evaluate candidates and coordinate the acquisition as your broker. Your qualified intermediary should confirm the identification and closing requirements, and your tax advisers should confirm eligibility and tax treatment. An out-of-state purchase does not automatically eliminate California tax.
What is the best Texas city for NNN investing?
Dallas/Fort Worth is the most active NNN market by deal volume in Texas, with the broadest selection of tenants and price points. Houston offers the best cap rates and is ideal for investors seeking higher yields. Austin commands premium pricing but benefits from exceptional population growth — best for long-term appreciation alongside income.
What NNN tenants are most active in Texas?
Chick-fil-A, McDonald's, Whataburger, Dollar General, 7-Eleven, AutoZone, CVS, and Walgreens are the most active NNN tenants in Texas. Whataburger is uniquely Texas-dominant and commands strong investor interest. Chick-fil-A in Texas is among the most sought-after NNN assets nationally due to its limited supply and corporate guarantee.
Access Texas 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 Texas NNN inventory.