Top NNN Retailers We’re Buying

Top NNN Retailers: Choices by Our Centennial Team Seniors 

Recent Starbucks Centennial Advisers purchased with a client in a capital gain event.
Recent Starbucks Centennial Advisers purchased with a client in a capital gain event.

When hunting for the perfect upleg, we go far and wide to seek the deal that will reap our clients the most benefits and align with a retailer that they enjoy. Beyond selecting top states to enter, we have our favorite retailers that we continuously recommend to those seeking passive income and no-headache investments.  

We surveyed our Senior agents for the retailers that time and time again come out on top in their searches:  

Michael Alper, Regional VP of Investments

  • Taco Bell:  This fast-food chain holds excellent name brand recognition. At some point it has been everyone’s favorite late-night snack and will always hold up in the quick-service food space. These deals boast attractive cap rates for a QSR with avg national store sales near the top of their segment.,  
  • 7-Eleven:  People will always pay for convenience! This convenient store chain always has prime locations and site selection. They performed well during Covid due to their straightforward and easy offerings to consumers making them a fool-proof option for an investor who wants some accelerated depreciation benefits and a proven segment leader. 

Edan Shalom, Broker/Regional VP of Investments

  • Burger King: This well-known burger chain is always offered at attractive cap rates that work well as uplegs for our clients. While Burger King is not a leader the brand has a very loyal following and occupies some of the best corners in any market.  For investors who are very focused on their return, this is the perfect tenant.  
  • Dollar Stores: These are commonly located in dense urban cities.  The ones out in the sticks can be problematic at re-lease, but a store that has established itself in the city has a highly likelihood to release when there is little land to just build a bigger, newer store 

Daniel Roland, Senior Industrial Adviser

  • Jiffy Lube: While there was some initial concern as to how auto shops would stay in business with the incline in electric vehicles, Jiffy Lube has been pivoting to help electric cars and quick-car-care vs their traditional oil change model. This keeps them as a high contender for an investment property including the special tax benefits of owning a property with an auto-service use/tenant.
  • Take 5: Take 5 is another brand that has demonstrated a great business model in the quick service for oil changes. This franchise business has been growing its location base nationwide, making opportunity readily available. As mentioned above, owning commercial property with an auto-service based use allows for special tax incentives.

Justin White, Managing Director

  • Starbucks: Starbucks is one of the most popular and well-known QSR brands and ever since they have added drive-thrus to their model, their accessibility and market share has skyrocketed. Recently our clients have been targeting their tertiary stores as you get Starbucks for 15-years at a higher cap rate.   
  • Bojangles: A favorite of the South, Bojangles kills in their markets. Their new stores are attractively designed. This isn’t a national play but with many cities in the Southeast seeing positive population growth the line in their drive thru’s continue to grow. 
  • Texas Born: This C-Store is similar to a 7Eleven (gas station convenience stores) at a better cap rate. They are focused in Texas and Oklahoma and sell more than your average convenience gas station, making it a growing local favorite.  
  • Maverik: I only stop at Maverik when roadtripping across the US, which is quite often. There locations are all well maintained with the best QSR customer service, along with meeting the general need to stop for gas and food. 
  • Child Care Services: Child-Care is going to be a continuously growing segment as more companies institute return-to-work policies post COVID. Additionally, the segment benefits for tax incentives and federal government programs that help working families cover costs. 

If you have questions about the type of investment property that best fits your budget, goals, and preferences, please reach out to the Centennial Team. The NNN segment is one of our favorite investment paths to lead our clients through so that they can truly enjoy of benefits of sitting back and celebrating life while rent checks hit their mailbox. Take away the stresses of being a landlord and start considering some of the retailers you regularly shop with as potential investment opportunities

Contact the Team! 562.269.4844