For some real estate investors that want to buy a stable commercial property, a 7-Eleven NNN for sale may be a good option. Aside from the brand being one of the biggest convenience store chains in the world, most if not all of these stores’ visibility and locations make them ideal for anyone looking for a commercial property that has high traffic and is in a safe neighborhood. Gas stations are also common properties that are leased out to 7-Eleven, which can further increase the value of the property.
The 7-Eleven brand is continuously expanding and is set to have over 20,000 stores open by 2025. This means that there are plenty of opportunities for real estate investors to buy a 7-Eleven NNN for sale and have a tenant that is likely to renew their lease. These commercial properties are also easy to manage, as the tenant is responsible for all maintenance and repairs. This can help take some of the burden off of the property owner, and allow them to focus on other investments.
The size of a 7-Eleven property is anywhere between 1,000 to 2,500 square feet, which is a manageable size for most investors. The lease length for a 7-Eleven NNN property is usually around 10 to 20 years, with a 10 to 15% rent bump every five years. This can help provide a stable income stream for the investor, as well as some potential for capital appreciation if the property is sold after the lease expires.
In case you are wondering if a 7 Eleven NNN for sale is the right investment for you, here are some pros and cons to consider:
Corner locations: Most 7-Eleven stores are located on corners, which increases the visibility of the store and can lead to higher traffic levels.
Recognized and excellent credit: 7-Eleven has an investment grade credit rating, meaning that they are a financially stable company and are less likely to default on their lease payments.
Simple ownership structure: 7-Eleven stores are typically single tenant properties, which means that there is only one lease and one tenant to worry about. This can make the investment and management process simpler.
Lack of depreciation: The store’s equipment and fixtures are typically leased from 7-Eleven, which means that the investor cannot depreciate them for tax purposes.
Potential for lower sales volume in rural areas: While 7-Eleven stores are typically found in high traffic areas, there is a risk that sales volumes may be lower in rural areas.
Issues with filling station properties: If the property is a gas station that is leased to 7-Eleven, there is a risk that the tenant may not renew their lease when it expires due to the volatile nature of gas prices.
If you are interested in purchasing a 7 Eleven NNN for sale, the team at Net Lease World can help. We have a wide selection of properties available, and our team of experts can help you find the perfect investment for your portfolio. Contact us today to learn how we can help!