Starbucks NNN Properties for Sale

Starbucks retail locations have become popular single-tenant net lease investments over the past few years. This development has been driven as much by the high-quality coffee and the boutique Starbucks experience due to their service offering focused on more affluent consumers in areas with great real estate.

What started in 1971 as a singular storefront in Seattle has blossomed into an international giant with over 35,000 stores worldwide today – and now with a strong balance sheet and credit profile as a publicly traded company provides a great opportunity for investing in commercial real estate.

Tenant Overview

One of the reasons that Starbucks has been able to dominate the upmarket coffee industry is its high-quality real estate locations. The business has a variety of criteria that they look for in picking a successful location.

By branding its coffee as gourmet and upscale, and identifying more affluent locations, Starbucks has enabled itself to set higher prices – which also means that it caters to a higher-income clientele. For local stores (i.e., those not in major city business districts), Starbucks looks for areas with a median household income of $70,000 or more. This ensures the location will have a customer base with disposable income to support its premium pricing.

The company also prefers placing stores in strong retail corridors and busy employment districts in proximity to other businesses. Starbucks generally likes their stores to have multiple access points, dedicated parking lots, and to be on the morning commute side of the street (as opposed to the side with more traffic during the evening commute, given that coffee is generally a morning drink).

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When you’re looking into a Starbucks NNN lease for sale, you may want to consider some of the factors outlined in the table below.

Starbucks Lease Structure

Starbucks franchises typically sign a 10-year net lease, during which the rent prices will be scheduled to increase every 5-10 years. Starbucks locations generally operate under a mixture of NNN and NN leases.

In an NNN lease, the tenant assumes responsibility for all expenses related to the property. While under a double-net (NN) lease, the landlord assumes responsibility for any property maintenance like roof repair or structural repair of the building. These additional landlord responsibilities may also be covered with additional insurance policies.

NN leases are generally the slightly less attractive option because these maintenance repairs can be pricey, especially large-scale improvements like roofing or flooring. But in an NNN lease, the tenant generally pays a lower base rent because they’re responsible for all of the other operating costs.

The average cap rate, or capitalization rate, for a Starbucks net lease investment is approximately 5.41%. The cap rate is an assessment of a Starbucks location's profitability and return potential. Generally, cap rates of 5% to 10% are considered good. Lower cap rates within, like Starbucks’ average cap rate, tend to mean that the investment is priced to have a lower risk.

It’s also important to note that the NNN lease contracts for a Starbucks tenant normally have options for termination with the appropriate legal notice. While that might seem risky from the investment side, as long as Starbucks is making money at the location, it’s generally in their best interest to continue the lease.

Starbucks has a formula for long-term successful locations which results in a very low chance of a vacancy in the lease.

Why Choose a Net Lease Over a Gross Lease When Investing in Commercial Real Estate?

When it comes to commercial real estate, there are many benefits for an investor who chooses to use a net lease instead of a gross lease. These two types of leases are opposites.

A gross lease is a predetermined amount that a tenant pays in order to use a space. It does not change based on operating expenses, as the landlord generally covers those costs. On the flip side, a net lease allows the landlord to pass operating expenses onto the tenant.

Single net leases, or “N” leases, pass property taxes onto the tenant in addition to the cost of rent, but the landlord is still responsible for insurance, maintenance, repairs, and utilities. N leases are not as common in the world of commercial real estate. Double net leases, or NN leases, and triple net leases, or NNN leases, are much more common options.

How to Evaluate a Starbucks Net Lease

It’s important to look at the value of the property as well as the strength of the tenant when considering an NNN lease. Especially when considering single-tenant properties, like the ones many new Starbucks locations are operating in, your tenant concentration will be either 100% or 0% – in other words, you’ll be generating great cash flow or none at all.

So to ensure that your Starbucks NNN lease works out, you’ll want to ensure that the property you’re investing in meets the qualifications that Starbucks prefers in its locations. That will help ensure that your property stays occupied and you keep generating revenue. This is especially important because of the termination option in most Starbucks NNN leases.

On the plus side, NNN lease tenants like Starbucks are generally widely known companies with strong balance sheets, meaning that you should be able to count on your payments coming on time and you won’t be chasing down your tenant for the next check.

How to Evaluate a Starbucks Net Lease

It’s important to look at the value of the property as well as the strength of the tenant when considering an NNN lease. Especially when considering single-tenant properties, like the ones many new Starbucks locations are operating in, your tenant concentration will be either 100% or 0% – in other words, you’ll be generating great cash flow or none at all.

So to ensure that your Starbucks NNN lease works out, you’ll want to ensure that the property you’re investing in meets the qualifications that Starbucks prefers in its locations. That will help ensure that your property stays occupied and you keep generating revenue. This is especially important because of the termination option in most Starbucks NNN leases.

On the plus side, NNN lease tenants like Starbucks are generally widely known companies with strong balance sheets, meaning that you should be able to count on your payments coming on time and you won’t be chasing down your tenant for the next check.

Real-Life Starbucks NNN Property Walkthrough

Let’s walk through a real-life example of a Starbucks NNN lease in Havelock, North Carolina.

For this property, you’d need to put down $600k-$800k to secure the $2M lease with a 6.1% cap rate, providing a steady return of ~$122,488 in NOI right out of the gate.

This Starbucks lease offers a stable, long-term income stream with minimal landlord responsibilities—Starbucks covers property taxes, insurance, and maintenance. Over time, as the lease progresses, you’ll benefit from predictable cash flow and the potential to renegotiate or renew the lease once the term ends.

By the time the lease matures after 9 years, you’ll have a $2m asset that’s more than 50% paid off in a high-traffic area, with the opportunity to renegotiate the terms of the lease to increase your passive income. Once you’ve negotiated, you could keep growing your equity in the lease, or sell it for a big payday. It’s a prime example of how NNN investments can deliver both financial security and growth potential.

And while NNN properties in North Carolina are definitely profitable, these numbers aren’t extraordinary. We have profitable listings across the US, some of which are even more attractive than this NC example.

What Makes Starbucks an Attractive NNN Tenant?

As of 2025, Starbucks remains a powerhouse in the coffee industry, with revenues of $36.18 billion in 2024, a number that has been consistently on the rise since opening its doors in 1971. The company now operates over 18,000 stores in the U.S. and has expanded to more than 38,000 locations globally, solidifying its presence in both urban and suburban markets.

Starbucks’ consistent growth is driven by its ability to adapt to consumer trends, including the rise of mobile ordering, delivery services, and sustainable practices. In 2025 alone, the company plans to open 1,500 new stores worldwide, further cementing its position as a leader in the retail coffee space.

Financially, Starbucks continues to demonstrate stability and strength. The company recently announced a 10% increase in its quarterly dividend, reflecting confidence in its cash flow and long-term growth prospects. With a credit rating of BBB+ from Standard & Poor’s, Starbucks is considered an investment-grade tenant, making it a low-risk option for NNN lease investors. Its strong balance sheet, loyal customer base, and strategic expansion plans make Starbucks one of the most attractive tenants in the single-tenant net lease market.

Check out all of our Starbucks NNN leases for sale to find your next investment vehicle today!