Taco Bell NNN Properties
Absolute NNN · BB+ / Ba1 credit · 5.25–6.25% cap rate · $1.8M–$3.5M
Why Investors Buy Taco Bell NNN Properties
Taco Bell offers some of the longest NNN lease terms available — up to 25 years — at higher cap rates than pure corporate-guaranteed QSRs. Owned by Yum! Brands, a Fortune 500 company, Taco Bell franchises operate on strong unit economics with consistent same-store sales growth. An excellent high-yield alternative to McDonald's or Starbucks.
Lease Structure
Brand Financials
Why Investors Choose Taco Bell
- 25-year initial lease terms — the longest in the QSR NNN sector
- Parent company (Yum! Brands) is Fortune 500 with $40B+ market cap
- Strong unit economics with industry-leading average unit volumes
- Higher cap rates than corporate-guaranteed QSRs — more income per dollar
- Drive-thru focus makes operations highly predictable
- Strong 1031 exchange replacement property with manageable price points
Key Risks to Underwrite
- Franchisee (not corporate) guarantee — strength depends on franchisee
- Must review franchisee financials carefully during due diligence
- Cap rates reflect sub-investment-grade credit
Ideal Investor Profile
- Investors seeking higher yield with acceptable franchise risk
- 1031 exchange buyers with $1.8M–$3.5M in exchange equity
- Investors who want longer lease terms with built-in rent escalations
Is Taco Bell Right for Your 1031 Exchange?
Taco Bell NNN properties are a popular 1031 exchange destination for investors who want to eliminate active management while preserving their equity in a nationally recognized corporate-guaranteed asset. With typical prices of $1.8M–$3.5M, these properties fit a wide range of exchange equity positions. The 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 Taco Bell Properties
We maintain an exclusive inventory of Taco Bell NNN properties — many of which never appear on LoopNet or CoStar. Contact us to see what's available before it trades.