McDonald's NNN Properties
Ground Lease / Absolute NNN · Baa1 / BBB+ credit · 4.25–5.25% cap rate · $2.5M–$5.0M
Why Investors Buy McDonald's NNN Properties
McDonald's is the gold standard in NNN ground lease investing. As a ground lessor, you own the land beneath one of the most recognized brands on the planet — with a corporate-guaranteed rent check arriving every month for 20+ years. McDonald's ground leases trade at the lowest cap rates in the NNN sector, reflecting their near-zero risk profile.
Lease Structure
Brand Financials
Why Investors Choose McDonald's
- Absolute NNN ground lease — zero landlord responsibilities, ever
- Corporate guarantee from McDonald's Corporation (NYSE: MCD, ~$215B market cap)
- 20-year initial terms with multiple 5-year extensions
- 10% rent bumps every 5 years — built-in inflation protection
- Operates profitably in virtually every economic environment
- Highest resale liquidity of any NNN asset — institutional buyer demand is enormous
Key Risks to Underwrite
- Lowest cap rates in NNN (4.25–5.25%) — premium price for premium safety
- Ground leases add legal complexity at disposition
- Limited appreciation upside due to already-premium pricing
Ideal Investor Profile
- 1031 exchange investors seeking maximum security
- Retirees or estate planning investors wanting zero management
- Investors preserving wealth rather than maximizing yield
Is McDonald's Right for Your 1031 Exchange?
McDonald's NNN properties are a popular 1031 exchange destination for investors who want to eliminate active management while preserving their equity in a investment-grade corporate-guaranteed asset. With typical prices of $2.5M–$5.0M, these properties fit a wide range of exchange equity positions. The Ground Lease / Absolute NNN structure means your 1031 replacement property comes with zero landlord obligations — ideal for investors who have sold multifamily, commercial, or other management-intensive assets and want truly passive income.
Compare Other NNN Tenants
Access Off-Market McDonald's Properties
We maintain an exclusive inventory of McDonald's NNN properties — many of which never appear on LoopNet or CoStar. Contact us to see what's available before it trades.