The Big List of NNN Franchises by Sector and Investment Tier

04/26/2025

Industry Insights

Triple-net leased (NNN) franchise properties are a cornerstone of passive commercial real estate investing. In these deals, tenants pay the property’s taxes, insurance, and maintenance, leaving the landlord with steady “mailbox money” rent checks. As a leading CRE marketplace, Brevitas has insight into all types of NNN opportunities – from fast-food restaurants to medical clinics. Below, we present a comprehensive list of NNN franchise brands grouped by sector (QSR, medical, fitness, retail, etc.), including both U.S. and international companies. For each, we highlight what the business does, its scale (number of locations), public ticker (if available), tips to find listings on Brevitas, and why it can make a strong NNN investment.

Whether you’re a 1031 exchange buyer seeking a hands-off income property or a private investor building a diversified NNN portfolio, understanding the landscape of franchise tenants is key. From “Amazon-proof” essential services to trendy expanding brands, this big list covers the spectrum. Read on for the top franchise tenants by category and a ranking of the best NNN franchise opportunities in today’s market.

QSR (Quick Service Restaurants)

Quick service restaurants – fast-food and fast-casual chains – are among the most popular NNN properties. QSR tenants generate reliable foot traffic with offerings that can’t be digitized (you can’t download a burger or coffee). They often sign long-term leases (15-20 years) and many have corporate guarantees, making them stable, “recession-resistant” options for NNN investors. Below are major QSR franchise brands commonly seen in NNN listings:

McDonald’s (NYSE: MCD) – The world’s largest fast-food chain with over 38,000 restaurants worldwide. McDonald’s iconic golden arches and value menu have made it a household name across generations. Many McDonald’s locations operate on absolute NNN ground leases, meaning the tenant (often the corporate franchisor or a large franchisee) handles all expenses. Search Brevitas for McDonald’s NNN listings and you’ll find these are prized assets. Why it’s a great NNN investment: McDonald’s brings an AA-rated corporate guarantee, very high brand popularity, and a recession-resistant business model. It consistently adapts (adding drive-thrus, digital kiosks, etc.) to maintain strong sales, providing investors with confidence in long-term cash flow.
Starbucks (NASDAQ: SBUX) – The dominant coffee shop chain, with around 35,000 stores globally (including ~15,000 in the U.S.). Starbucks locations are frequently sought-after NNN properties. The company often signs corporate leases of 10+ years on drive-thru equipped stores. Investors on Brevitas can readily find Starbucks NNN properties for sale. Investment merits: Starbucks is an “everyday necessity” for millions, driving daily foot traffic and repeat business. It has a strong corporate credit and a loyal customer base. Its success in mobile ordering and drive-thru service also makes it highly adaptable and internet-resistant, ensuring continued store growth and dependable performance.
Chick-fil-A – A privately owned fast-food chain specializing in chicken sandwiches, with over 2,800 locations in the U.S. Despite operating only 6 days a week (closed Sundays), Chick-fil-A generates industry-leading sales per unit. Most locations are ground-leased by the company for 15 to 20-year terms. Why NNN investors like it: Chick-fil-A’s cult-like customer following and top-tier sales volumes make its ground leases akin to “trophy” assets. While the company is private (no ticker), it has exceptional brand strength and creditworthiness (backed by decades of steady expansion). Investors value its internet-proof model (you can’t get their unique hospitality and chicken anywhere but the restaurant) and long-term commitment to each site.
Taco Bell (NYSE: YUM) – The largest Tex-Mex quick-serve chain, with over 7,000 U.S. locations. Taco Bell is part of the Yum! Brands family (along with KFC and Pizza Hut). Its restaurants (often drive-thru equipped) typically have long NNN franchise leases with periodic rent increases. Why it’s attractive: Taco Bell enjoys a devoted following for its affordable, innovative menu (think Doritos Locos Tacos). As a tenant, it benefits from Yum!’s corporate backing and marketing power. Investors appreciate Taco Bell’s late-night traffic and solid unit economics. In some markets, new Taco Bell NNN deals have traded at low cap rates (~4-5%), underscoring their perceived stability and demand.
Burger King (NYSE: QSR) – A global burger franchise with around 18,700 locations in 100+ countries. It’s the second-largest burger chain after McDonald’s. Many U.S. Burger King units are franchised; NNN deals often come with franchisee guarantees (sometimes backed by Restaurant Brands International, the parent company). NNN investment notes: Burger King’s brand is well-known, and as an affordable fast-food option it remains resilient. While performance can be uneven, investors often find Burger King cap rates slightly higher than McDonald’s or Chick-fil-A, which can mean better initial yield. With proper due diligence on the franchisee’s strength, a BK ground lease or NNN deal can be a solid addition, offering a recognizable brand with a long operating history.
Wendy’s (NASDAQ: WEN) – Another top burger chain, with about 7,000 restaurants worldwide. Wendy’s is known for its fresh-never-frozen beef and steady stream of catchy marketing campaigns. In NNN arrangements, Wendy’s properties often feature 20-year franchise leases, sometimes with corporate guarantees if the tenant is a large franchise operator. Why invest: Wendy’s provides exposure to the burger QSR sector with a beloved brand that has shown consistent performance. The company has modernized many stores and menus, strengthening its competitive position. For investors, Wendy’s NNN leases typically offer long-term stability and rent bumps, plus the backing of a major franchisor (in many cases) for credit peace of mind.
Dunkin’ – Formerly Dunkin’ Donuts, this leading coffee and breakfast chain has over 9,000 U.S. locations (and is expanding beyond). Now part of Inspire Brands (private), Dunkin’ shops are usually franchised. NNN Dunkin’ deals often involve smaller footprint stores or pad sites, some with drive-thrus. Investment appeal: Dunkin’ is an East Coast staple with a loyal morning customer base. It’s backed by a large parent company and benefits from daily repeat business (the morning coffee routine is hard to break). Leases tend to be 10-15 years and often absolute NNN. Drive-thru locations have become especially desirable post-pandemic. While individual franchisee strength varies, the Dunkin’ brand’s ubiquity and demand for quick breakfast make these properties relatively secure and “Amazon-proof.”
Chipotle Mexican Grill (NYSE: CMG) – A fast-casual pioneer with over 3,200 locations, Chipotle blurs the line with QSR and has become a top net lease tenant. The chain’s build-your-own burrito bowls and tacos drive high sales volumes, and recent additions of “Chipotlane” drive-thru pickup lanes have only increased its attractiveness. Why it’s a strong NNN candidate: Chipotle is a publicly traded, investment-grade company that signs long-term leases and has excellent credit. Its focus on convenience (online ordering, drive-thru pickup) and healthy-ish menu positions it well against economic or online pressures. New Chipotle ground leases often see cap rates in the 4-5% range, reflecting investor confidence in the brand’s growth trajectory and corporate guarantee.
KFC (NYSE: YUM) – Kentucky Fried Chicken, another Yum! Brands flagship, with about 25,000 units globally (nearly 4,000 in the U.S.). KFC has a long history and remains one of the top chicken chains worldwide. Many KFC properties are older, but Yum and franchisees have been remodeling locations and building new ones (sometimes as dual-brand stores with Taco Bell or Pizza Hut). NNN highlights: KFC offers absolute NNN leases in many instances, often at more affordable price points than Chick-fil-A. Investors are drawn to KFC’s established market presence and the universal appeal of fried chicken. While the brand isn’t as flashy as some rivals, fried chicken is a staple that transcends online disruption. A well-located KFC, especially a new prototype or a KFC/Taco Bell combo unit, can provide steady income with Yum! Brands’ credit backing the lease.
Domino’s Pizza (NYSE: DPZ) – The largest pizza chain globally by sales, with around 19,500 stores (6,700+ in the U.S.). Domino’s is known for its delivery and carryout focus and strong digital ordering platform. Most stores are franchised, often in small retail spaces. Freestanding Domino’s with drive-thru pickup windows do come to market as NNN deals. Why investors consider it: Pizza is a highly internet-resistant segment (you still need a local kitchen to fulfill orders). Domino’s corporate is a Fortune 500 company with a solid balance sheet, and its franchisees benefit from the brand’s technology and marketing. NNN leases for Domino’s are typically shorter (10-15 years) and may involve franchisee guarantees, so credit diligence is key. However, the brand’s ubiquity and steady demand for pizza (even during recessions) make these properties a reliable if modest-yield part of a net lease portfolio.
Popeyes (NASDAQ: QSR) – A fast-growing fried chicken chain (approximately 3,900 restaurants) owned by Restaurant Brands International. Popeyes gained national fame after its chicken sandwich went viral in 2019, sparking a chicken sandwich “war” and boosting sales significantly. Franchisees are actively building new Popeyes locations across the U.S., typically on 15-20 year NNN leases with drive-thrus. Investment considerations: Popeyes offers a way to ride the growth of the popular chicken segment. Its brand momentum is strong, and RBI provides a large corporate parent. Cap rates on Popeyes NNN properties tend to be slightly higher than Chick-fil-A (reflecting private franchisee credit vs. Chick-fil-A corporate structure), but investor demand is high. As the chain continues to expand, owning a Popeyes NNN asset can mean aligning with a rising star in fast food, backed by a solid franchisor.
Sonic Drive-In – A unique drive-in fast-food concept with about 3,500 locations in the U.S. (part of Inspire Brands). Sonic’s model of carhop service and outdoor stalls sets it apart. Many Sonic franchises operate on large lots to accommodate drive-in stalls plus a drive-thru lane. NNN appeal: Sonic’s format is nostalgic and highly differentiated, cultivating a loyal customer base especially in the South and Midwest. From an investor’s perspective, Sonic properties are often absolute NNN ground leases (20-year terms) with franchisee or corporate guarantees (Inspire Brands is a multi-billion-dollar parent). While the drive-in model can be weather-dependent, the inclusion of drive-thrus and a strong drink/menu offering keep sales robust. Sonic adds diversity to an NNN portfolio while still providing a reliable, well-known QSR tenant.
Arby’s – A major sandwich chain with over 3,400 units, owned by Inspire Brands (also parent to Dunkin’, Sonic, and others). Arby’s has revamped its image and menu in recent years (remember “We have the meats!”) which has improved its performance. NNN Arby’s deals usually involve freestanding restaurants with drive-thrus and long 20-year leases. Why invest: Arby’s may not be the trendiest brand, but it’s a steady performer in the QSR space with a devoted fan base for its roast beef sandwiches. Many Arby’s franchisees are large operators with backing from Inspire. Investors often find Arby’s cap rates a bit higher, offering slightly better yield while still enjoying a nationally recognized tenant. As part of a larger franchise portfolio, Arby’s can provide stable income and sector diversification.
Raising Cane’s – A privately held fast-food chain focused exclusively on chicken fingers, with roughly 700 locations (and growing fast). Raising Cane’s has exploded in popularity and plans to triple its store count in coming years. The company tends to sign 15-20 year ground leases on newly built restaurants. Investment outlook: Raising Cane’s is one of the hottest emerging QSR tenants. Investors are keen on its high sales volumes and rapid expansion. New Cane’s ground leases sometimes trade at cap rates comparable to top-tier QSRs, reflecting its “cult” brand status. While still smaller than established giants, Cane’s growth trajectory and fan loyalty signal strong long-term potential. A NNN Cane’s acquired today could benefit from the brand’s rise and increasing credit strength over time.
Dutch Bros Coffee (NYSE: BROS) – An up-and-coming drive-thru coffee chain that went public in 2021. Dutch Bros has over 700 locations, aiming for 4,000 nationwide. Their small-footprint kiosks serve coffee, smoothies, and specialty drinks, primarily via drive-thru. Many Dutch Bros properties come to market as sale-leasebacks with 15-year NNN terms. NNN profile: Dutch Bros offers a compelling combination of a drive-thru focused model, relatively low development costs, and a youthful, loyal customer following. Investors are excited about the brand’s growth – new Dutch Bros leases often have cap rates in the 5% or even sub-5% range, indicating strong demand. As an NNN tenant, Dutch Bros brings corporate-backed leases (the company has solid financials and rapid revenue growth) and a concept that thrives on convenience, making it well suited for the on-the-go consumer economy.

Medical & Healthcare

Medical franchises and companies provide essential services that are highly resistant to e-commerce disruption. From urgent care clinics to dialysis centers, these tenants offer in-person healthcare that cannot be delivered online. They often sign long-term NNN leases (many backed by large healthcare corporations or franchise networks) and benefit from stable demand driven by demographics and healthcare needs. Here are notable medical-sector tenants in NNN real estate:

AFC Urgent Care – American Family Care (AFC) is one of the largest urgent care clinic franchises, with over 400 locations across the U.S. (and growing). AFC centers provide walk-in medical care for non-life-threatening injuries and illnesses, bridging the gap between primary care and the ER. NNN investment case: Urgent care clinics like AFC have become “needs-based” retail, drawing consistent foot traffic as consumers seek convenient healthcare. Many AFC clinics are in standalone or strip center spaces with 10+ year NNN leases, often backed by a regional franchisee or the corporate franchisor. These properties offer investors steady income from a healthcare tenant that is largely immune to internet competition (you can’t get an X-ray or stitches via Amazon). The healthcare focus also tends to be recession-resistant – people need medical care in any economy.
MedExpress Urgent Care – A national urgent care chain that grew to hundreds of locations (originally backed by private equity and later acquired by Optum). MedExpress clinics are typically freestanding or in retail plazas, offering extended hours walk-in care. Why investors like it: MedExpress (and similar providers like CareNow from HCA or CityMD) often have strong corporate parents guaranteeing leases. A MedExpress NNN lease (usually 10-15 years) comes with the stability of the healthcare sector. These clinics thrive on providing immediate, in-person service that telemedicine can’t fully replace. For NNN buyers, they offer long-term occupancy by a tenant with a solid balance sheet (Optum is part of UnitedHealth Group, a Fortune 500 healthcare giant) and a service that sees steady demand regardless of online retail trends.
Fresenius Medical Care (NYSE: FMS) – Fresenius is a global leader in dialysis clinics, with roughly 4,000 clinics worldwide (including over 2,500 in the U.S.). Patients with kidney failure visit Fresenius centers multiple times weekly for life-sustaining dialysis treatment. NNN profile: Fresenius clinics are often found in medical office buildings or standalone facilities, frequently as build-to-suit projects. Lease terms are long and backed by Fresenius’s investment-grade credit. These properties are coveted for their “mission-critical” nature – dialysis is essential healthcare, and Fresenius tends to renew leases given the high cost to relocate equipment and patients. Investors get a reliable medical tenant with global backing, strong credit, and virtually zero e-commerce risk.
DaVita Inc. (NYSE: DVA) – DaVita is the other dominant dialysis center operator, with about 3,100 clinics (2,600+ in the U.S.). Like Fresenius, DaVita treats patients with chronic kidney disease and typically signs long-term leases for its facilities. Investment highlights: DaVita NNN properties offer similar benefits: essential healthcare usage, long lease durations, and a tenant that is likely to stay for the long haul. DaVita is a public company (Fortune 500) and while its credit rating is slightly lower than Fresenius, it’s still a substantial healthcare provider. NNN investors value DaVita clinics for their stable, necessity-driven cash flow. These assets are often viewed as both recession-resistant and Amazon-proof – a powerful combination for long-term investing.
Aspen Dental – A leading dental care franchise network with over 1,000 offices nationwide. Aspen Dental practices are typically housed in retail outparcels or shopping centers and provide general dentistry and dental prosthetics. Why it’s appealing: Dental offices like Aspen Dental sign NNN leases (often 10+ years) and frequently do sale-leaseback deals to free up capital. For investors, an Aspen Dental offers a healthcare tenant with a recognizable brand and private equity backing (Aspen is supported by large PE firms). Oral care is a repeat, required service – cleanings, fillings, dentures – that cannot be done remotely, ensuring consistent patient flow. An Aspen Dental NNN property usually features a corporate guarantee from Aspen Dental Management, giving the landlord additional credit security beyond the individual clinic’s performance.
Veterinary Clinics (e.g., Banfield Pet Hospital) – Banfield is a vet clinic chain with over 1,000 locations (often located inside PetSmart stores, but also standalone clinics). Veterinary offices provide pet healthcare – another in-person service that’s booming with rising pet ownership. NNN context: Standalone veterinary clinics operating under national brands or consolidators have become attractive NNN targets. Many are backed by large firms (Banfield is owned by Mars, Inc., a global petcare company). Investors see vet clinics as “Amazon-proof” since you can’t vaccinate or do surgery on a pet online. Leases tend to be long and guaranteed by the parent company. With the pet industry exceeding $100 billion and growing, veterinary NNN properties offer stable income rooted in the enduring American love of pets.

Fitness & Gyms

Fitness chains occupy retail space ranging from small studios to big-box gyms. Despite competition from at-home workout tech, in-person fitness centers remain popular as community hubs and experiential offerings. Many gym franchises are expanding, signing NNN leases in retail centers or standalone buildings. Investors should note that gym leases may include periodic termination options or co-tenancy clauses, but top brands still provide attractive long-term deals. Key fitness tenants include:

Planet Fitness (NYSE: PLNT) – A leading budget gym franchise with over 2,700 clubs, known for its $10/month memberships. Planet Fitness locations are often around 15,000-20,000 sq ft, frequently as anchor or junior anchor tenants in shopping centers or converted retail boxes. NNN investment angle: Planet Fitness corporate (publicly traded) or its large area franchisees typically sign 10-15 year NNN leases. The brand’s explosive growth and massive member base (19+ million) indicate strong demand for its “no-frills” fitness model. Gyms are inherently in-person and membership-based, giving them resilience (people can’t get the full gym experience at home indefinitely). Investors like Planet Fitness for its national recognition, steady expansion (even through economic cycles as people seek affordable fitness), and the possibility of higher yields – gym properties often trade at slightly higher cap rates than QSR or essential retail, offering good returns for the risk.
Anytime Fitness – The world’s largest fitness franchise by number of locations, with over 5,000 gyms globally (around 2,300 in the U.S.). Anytime Fitness offers 24/7 gym access in smaller footprints (typically 4,000-6,000 sq ft neighborhood gyms). Why it’s notable: As a franchise, local operators run Anytime Fitness sites, but the brand has proven durable and continues to grow. In NNN deals, an Anytime Fitness lease might be backed by a multi-unit franchisee. These gyms cater to a steady base of members who value convenience and round-the-clock access. For landlords, the simplicity of the model (no pools or large staff, just gym equipment and keycard entry) can mean lower facility wear-and-tear. While credit is franchisee-dependent, the sheer scale of Anytime Fitness and its low-cost model make vacancies less likely – another gym or fitness concept could easily backfill if needed. Investors looking at smaller retail spaces in local markets often find Anytime Fitness as a stable, internet-resistant tenant (you can’t work out online!) with community ties.
LA Fitness (Fitness International LLC) – A major big-box gym operator (private) with over 700 clubs across the U.S. and Canada. LA Fitness clubs (sometimes rebranded as Esporta Fitness in newer value-oriented format) typically occupy large 30,000+ sq ft facilities, often in high-traffic retail corridors. NNN context: LA Fitness usually leases spaces in shopping centers or repurposed retail buildings, and occasionally does build-to-suit deals. While not a franchise, its scale and market presence make it a key fitness tenant. Investors in retail properties consider LA Fitness a traffic driver that can anchor a center. Lease lengths are long and corporate-guaranteed. The fitness industry did face challenges during COVID, but LA Fitness rebounded as people returned to gyms. For an NNN investor, a well-performing LA Fitness can offer a strong tenant covenant (company has significant revenues) and a use that draws consistent visits (members might visit 2-3 times a week). The caveat is that gyms aren’t as “sticky” as, say, pharmacies – one must gauge local competition and the tenant’s commitment to that site (LA Fitness has sometimes consolidated clubs). Overall, as part of a diversified NNN portfolio, a flagship gym can add balance and yield.
Orangetheory Fitness – A boutique fitness studio franchise with over 1,500 locations worldwide, focusing on coach-led high-intensity interval training classes. Studios are usually 3,000 sq ft inline spaces in retail centers. Investment points: Orangetheory’s franchisees typically sign 5-10 year NNN or NN leases. The concept has a strong following and membership model, contributing to steady rent payments. While smaller than big gyms, Orangetheory studios benefit landlords by driving regular foot traffic (classes throughout the day) and often drawing a higher-income clientele to a center. They are also relatively easy to re-lease to other fitness or retail uses if needed (open floor plan). As an NNN investor, one should consider the franchisee strength, but the brand’s global success and continued growth indicate that well-located studios can be reliable. The need for an in-person group workout experience gives Orangetheory a degree of e-commerce immunity (virtual classes exist but haven’t replaced the physical class popularity).

Big Box Retail (Anchors & Department Stores)

“Big box” retailers are large-format stores that often anchor shopping centers or stand alone as destination retail. Examples include superstores, home improvement centers, and wholesale clubs. Many of these companies own their real estate, but they also do sale-leasebacks or ground leases, creating NNN opportunities. Big box tenants usually come with strong corporate credit and name recognition. For investors, these can be lower-management, long-term investments if structured as NNN. Key big box chains include:

Walmart (NYSE: WMT) – The world’s largest retailer, with over 10,500 stores globally (about 4,700 Walmart stores in the U.S. plus Sam’s Club warehouses). Walmart Supercenters (which combine general merchandise and grocery) can exceed 180,000 sq ft. While Walmart owns many of its locations, the company also has ground leases or sale-leaseback arrangements on some stores and outparcels. NNN investment impact: A Walmart ground lease is considered a blue-chip NNN asset – Walmart’s AA credit rating and essential retail offering (from food to pharmacy) make it a highly secure tenant. These deals often have 20-30 year terms. For investors, the upside is an ultra-stable income backed by the Fortune 1 company; the trade-off is lower cap rates and limited inventory since Walmart doesn’t often divest real estate. Internet-resistance is high: Walmart’s omnichannel strategy (in-store + online pickup) has reinforced the importance of its physical stores. Owning a Walmart-anchored property, even a pad site in its parking lot, can significantly boost a portfolio’s credibility and stability.
Target (NYSE: TGT) – A leading big-box retailer with ~1,950 stores in the U.S. Target stores (typically 50,000–180,000 sq ft depending on format) are often located in suburban plazas or urban multi-level developments. Target generally leases space in many urban locations and occasionally does sale-leasebacks in suburban ones. Why investors care: Target is an investment-grade tenant (rated in the “A” category) with a beloved brand and a strong e-commerce+store integration (order pickup, same-day services). In NNN scenarios, a Target lease provides a long-term commitment from a top-tier retailer. Recent years have seen Target thrive by offering a curated, stylish product mix and acting as a mini-mall (with in-store Starbucks, CVS pharmacies, etc.). For an investor, a ground-leased Target or a Target shadow-anchoring a center can be a signal of property strength. Cap rates are usually low given the credit quality. While not every Target deal is available to individual investors (many are part of larger centers), those that are available offer a rare chance to lock in a nationally iconic tenant with very stable prospects.
Home Depot (NYSE: HD) – The largest home improvement retailer, operating ~2,300 stores (warehouse-style stores of 100,000+ sq ft). Home Depot often owns its stores but also does ground leases, especially for locations developed by retail center landlords. NNN highlights: Home Depot is about as “Amazon-proof” as it gets in retail – contractors and DIY customers need immediate access to materials, and many products (lumber, appliances) are impractical to ship. A Home Depot ground lease (common term 20-25 years plus extensions) is highly sought after, backed by Home Depot’s AA- credit. Investors get a long-term occupant that draws huge traffic (benefiting any adjacent retailers too). Build-to-suit Home Depot deals typically feature landlord structures with minimal responsibilities. While these properties are large and expensive, the payoff is a decades-long stream of income from a rock-solid tenant. In downturns, Home Depot stores have historically remained busy (people fix or improve homes instead of moving), underscoring their durability as NNN investments.
Lowe’s (NYSE: LOW) – The second-largest home improvement chain, with about 2,000 stores in North America. Lowe’s stores are similar in size to Home Depot and likewise serve a mix of DIY consumers and pros. Lowe’s also engages in ground leases and sale-leasebacks for some properties. Investment perspective: Lowe’s carries an A- credit rating and has been modernizing operations in recent years, making it a solid anchor tenant. From an NNN investor standpoint, a Lowe’s lease is almost as desirable as a Home Depot lease – providing long-term occupancy by a fundamentally internet-resistant retailer. Lowe’s has a slightly softer market presence in some regions, so investors may find cap rates marginally higher than Home Depot deals (i.e., a bit more yield). However, the company’s commitment to its locations (stores are critical distribution nodes for bulky products) and its backing (multi-billion dollar public firm) make Lowe’s-anchored real estate a relatively safe harbor. It’s a strong candidate for a Tier-1 NNN tenant in any portfolio.
Costco (NASDAQ: COST) – A membership-based wholesale club with about 850 warehouses worldwide (roughly 585 in the U.S.). Costco stores (145,000+ sq ft) are typically owned by the company, but some are on ground leases in larger developments. NNN value: Owning a property leased to Costco is like holding gold in the net lease world. Costco’s customer loyalty, bulk-value business model, and strong balance sheet (A+ rated) make it one of the safest retail tenants. The company’s focus on in-person treasure-hunt shopping and fresh groceries means its warehouses are consistently busy and very insulated from e-commerce threats. Investors lucky enough to find a Costco ground lease or sale-leaseback opportunity can expect a modest cap rate, but in exchange get a high probability of lease renewal and uninterrupted rent. Costco tends to expand slowly and only in prime trade areas, so their presence is a stamp of a location’s strength. For an NNN portfolio, a Costco adds immense credit quality and a virtually recession-proof revenue stream (people flock to Costco in good times and bad for savings).
Best Buy (NYSE: BBY) – The leading electronics big-box retailer, with around 1,000 stores (including U.S., Canada, Mexico). Best Buy stores (~35,000–50,000 sq ft) are often inline anchors in power centers. Electronics retail has online competition, but Best Buy has survived by offering in-store services (Geek Squad) and serving as a showroom for major brands. NNN summary: Best Buy NNN leases might come via sale-leaseback as the company optimizes its real estate. Investors considering Best Buy properties look at the lease term and location carefully, given the sector. On the plus side, Best Buy is a well-known public company with solid financials and has outlasted former competitors (Circuit City, etc.). A long-term Best Buy lease in a prime retail corridor can be a good yield play (cap rates generally higher here than grocery or home improvement). It’s somewhat less “internet-proof,” so investors often underwrite with a bit more caution or assume higher cap rate to compensate. That said, Best Buy has become the last major nationwide electronics chain – its physical stores still play a crucial role for consumers who want to see and buy tech products immediately, which bodes well for its continuing tenancy.
Department Stores (e.g., Kohl’s, Macy’s) – Traditional department store chains often anchor malls or large shopping centers. Some, like Kohl’s (NYSE: KSS) with ~1,100 stores, have done sale-leasebacks on their real estate. Macy’s (NYSE: M) and others also sometimes lease locations in malls. NNN considerations: Department store tenants come with mixed feelings. They are big and can pay significant rent, and if corporate-backed, the lease guarantee can be strong. However, this sector faces heavy e-commerce headwinds and changing consumer habits. As NNN investments, one should approach selectively: for instance, a Kohl’s with a long lease and a right-sized format in a busy strip center (especially since Kohl’s is adding Amazon return counters and Sephora shops, driving traffic) could be a steady performer. But a large older Macy’s in a struggling mall might be high risk for vacancy or downsizing. Investors may find higher cap rates here reflecting that risk. In summary, some department store NNN deals can yield attractive returns, but thorough due diligence on store performance and retail market health is critical. They represent the higher-risk end of big box NNN opportunities.

Grocery Stores

Grocery stores are a fundamental “essential retail” category known for steady traffic and internet resilience. People still predominantly buy groceries in person, and many grocers have thrived by adding curbside pickup and delivery rather than losing customers to online-only competitors. NNN investments in grocery often involve sale-leasebacks or ground leases of supermarket properties. These tenants typically sign long initial lease terms (15-20 years) due to the significant investment in refrigeration and tenant improvements. Key grocery brands include:

Kroger (NYSE: KR) – The largest traditional grocery chain in the U.S., operating around 2,750 supermarkets under various regional banners (Kroger, Ralphs, Harris Teeter, Fry’s, etc.). Kroger stores often include pharmacies and fuel stations, making them one-stop shops for consumers. NNN investment notes: Kroger is a Fortune 100 company with investment-grade credit, which gives weight to its lease guarantees. The company has done sale-leasebacks to unlock capital; thus, investors can find Kroger-occupied NNN properties in the market. A Kroger lease usually runs 15-20 years and may have parent company guarantee depending on the structure. As a tenant, Kroger is about as essential as it gets – groceries are needed in any economy, and Kroger’s omnichannel strategy (in-store, pickup, delivery) has reinforced the importance of its brick-and-mortar locations. With Kroger’s proposed merger with Albertsons, the combined entity should be even larger and more efficient, potentially further securing the covenant behind Kroger-leased stores. For investors, a well-located Kroger or one of its regional banner stores can provide long-term, stable cash flow anchored by Americans’ weekly grocery needs.
Publix – A private, employee-owned supermarket chain with about 1,400 stores across the Southeast. Publix stores are typically high-performing and often serve as anchor tenants in shopping centers. Publix tends to prefer owning its real estate, but there are instances of leased stores or ground leases, especially in newer developments. Why it’s valuable: Publix is renowned for strong customer loyalty, top-tier sales, and a very healthy financial position (virtually no debt). For NNN investors, a Publix lease (if you can secure one) is like a bond – the company has never closed a store for poor performance in its 90+ year history. Publix’s commitment to quality stores and community presence makes them likely to renew leases and maintain properties meticulously. Even though Publix is private (no public ticker, no published credit rating), their status as one of the most profitable grocers implies a solid implicit credit. An investor who finds a Publix-anchored center or outparcel to buy will benefit from a tenant that essentially guarantees foot traffic and stability, often translating to consistent rent and property appreciation.
Albertsons Companies (NYSE: ACI) – A major national grocery operator with over 2,200 stores under banners like Albertsons, Safeway, Jewel-Osco, Shaw’s, and others. Albertsons went public but is currently in the process of a planned merger with Kroger. Many Albertsons/Safeway stores are leased from REITs or in shopping center outparcels. NNN view: An Albertsons or Safeway on a long-term lease can be a solid bet, particularly in regions where the brand has a leading market share. These stores often have pharmacy drive-thrus and fuel centers, adding to their stickiness as tenants. Lease guarantees might be on a banner level or the parent company; either way, the scale of Albertsons (soon potentially part of Kroger) provides confidence. Investors will want to consider local store performance – grocery is low margin, so a thriving location is key. Assuming a strong location, an Albertsons lease offers essential retail security and the potential upside of corporate actions (post-merger, some sites might be assigned to other grocers which could even improve credit or rent terms). Overall, grocery-anchored properties with an Albertsons or Safeway provide core investment stability anchored by everyday consumer spending.
Aldi – A global discount grocery retailer from Germany that has rapidly expanded in the U.S., now with about 2,500 stores across 39 states. Aldi stores are smaller format (typically ~12,000 sq ft) focusing on private-label goods at very low prices. Many Aldi locations are in leased shopping center end caps or freestanding buildings. Why investors watch it: Aldi’s aggressive growth and no-frills, cash-flow-positive model make it a desirable tenant. As a private company, Aldi doesn’t provide a public credit rating, but its massive international presence and cash-rich business instill confidence. In NNN deals, Aldi often signs 15-year initial terms. Landlords appreciate Aldi’s efficient operations – they draw steady traffic, yet don’t require oversize parking or fancy build-outs. Aldi’s focus on essential grocery items makes it quite recession-resistant (during economic downturns, more shoppers flock to discount grocers). For an investor, acquiring a property with a new Aldi lease can offer a combination of a growing corporate guarantor and a use that will consistently draw foot traffic (and likely spur additional development nearby). With Aldi aiming to continue U.S. expansion, expect demand for their leased sites to remain high in the net lease investment community.

Gas & Convenience Stores

Gas stations and convenience stores blend retail with fuel sales, offering quick-stop essentials. They are classic NNN properties; often the tenant is responsible for everything including environmental maintenance. Many gas/C-store brands operate on franchise models or as corporate-owned units with franchise branding. These properties are typically on busy corners with good access. Investors favor them for their consistent need-based usage (fuel, snacks, drinks) and typically strong real estate locations. Here are prominent brands in this category:

7-Eleven – The world’s largest convenience store chain, with over 80,000 stores globally (about 13,000+ in the U.S. after acquiring Speedway). 7-Eleven stores range from small urban convenience shops to full-size gas station marts. Most U.S. locations sell fuel under brands like 7-Eleven, Speedway, or Sunoco. NNN investment take: 7-Eleven is privately owned (Tokyo-based Seven & i Holdings), but it’s a giant in the industry with very deep resources. As a tenant, 7-Eleven often prefers ground leases for new builds, and sale-leasebacks are common as well. The leases are absolute NNN, typically 15-20 years with rent bumps. Investors like 7-Eleven for its ubiquitous brand (people will stop at a 7-Eleven without even thinking about who owns it) and its resilience – convenience items and fuel sales are steady even as online retail grows. Post-Speedway merger, 7-Eleven controls even more of the U.S. market, making its stores increasingly critical. A 7-Eleven ground lease usually comes with a strong corporate guarantee. These properties often trade at low cap rates, reflecting the high demand for a tenant that sells daily necessities (gasoline, coffee, snacks, lotto) largely shielded from e-commerce. One thing to monitor is the shift to electric vehicles; however, 7-Eleven has been proactive, adding EV charging stations at some locations, and its convenience retail aspect remains vital.
Circle K (Alimentation Couche-Tard, TSX: ATD) – A major convenience store and fuel chain with about 7,000 stores in the U.S. (and 14,000+ globally under the Canadian parent company). Circle K convenience stores are often paired with fuel pumps (branded Circle K or associated oil brands). Why it’s appealing: Circle K’s parent is a highly profitable global C-store operator, providing a solid backing for leases. In net lease deals, Circle K or its franchisees sign long absolute NNN leases. These sites thrive on commuter traffic and quick visits – something Amazon can’t replace. For investors, Circle K properties offer exposure to a stable, everyday business. The leases usually feature scheduled rent escalations and options to extend, meaning a well-located gas/C-store can be an income generator for decades. Credit is effectively on Couche-Tard (if corporate) which is investment-grade, or on large fuel jobbers for franchise locations. Given the company’s continued expansion and adaptation (many Circle K’s are adding foodservice, EV chargers, etc.), owning a Circle K corner site can be a savvy long-term play.
Casey’s General Stores (NASDAQ: CASY) – A popular convenience store chain with over 2,400 locations, primarily in the Midwest and Plains states. Casey’s operates large convenience stores with fuel, known for their pizza and prepared foods in smaller towns. NNN factors: Casey’s is a public company and often owns its stores, but does engage in sale-leasebacks for portfolio management. A Casey’s lease will typically be corporate-backed and long-term. Investors find Casey’s attractive for its niche dominance – in many rural areas, Casey’s is the go-to gas, food, and grocery spot. This local essentiality means steady sales and tenant stability. The brand is less known nationally, but within its markets it has a loyal customer base. For an NNN investor, a Casey’s property can offer a higher cap rate than coastal assets, yet still deliver reliable performance given the lack of competition in those areas. As the company expands into more states, its credit and scale continue to strengthen, benefiting landlords holding Casey’s leases.
Wawa – A beloved East Coast convenience chain with about 1,100 stores (and expanding into new states). Wawa combines a high-volume gas station with a popular made-to-order food and coffee offering. Many Wawa fans treat it as a daily ritual. Investment perspective: Wawa is private and family-owned with a very strong financial profile. It usually prefers to own its locations, but there are ground lease examples (often where a developer delivered a site). A Wawa on a ground lease is like a trophy asset in the C-store space – the stores are exceptionally busy, effectively functioning as quick-service restaurants plus gas. The tenant’s credit isn’t publicly rated, but their success and prudent growth imply solidity. Investors who manage to acquire a Wawa-leased site enjoy a long-term bond with a tenant that is both “cult favorite” and essential (fuel + food). Wawa also has plans to add EV charging and even drive-thru only formats, showing it innovates with the times. All of this points to a tenant likely to prosper in the evolving fuel retail landscape. Owning a Wawa NNN is often seen as a bet on the enduring need for convenience in an on-the-go society.
Shell, Chevron, BP (Oil Brand Franchises) – Many gas stations are branded by major oil companies like Shell (NYSE: SHEL), Chevron (NYSE: CVX), BP (NYSE: BP), ExxonMobil, etc. Typically, the real estate may be operated by a local jobber or convenience operator under franchise/license from the oil brand. NNN lease context: It’s not uncommon to see NNN leases where the tenant is a regional operator using, say, Shell branding. The appeal to investors is the instantly recognizable signage and the knowledge that fuel sales provide a steady income stream for the operator (ensuring rent is paid). However, these require a bit more analysis of the actual tenant’s financial strength since “Shell” or “BP” might not be on the lease (unless it’s a company-operated location). Many such sites have combined convenience stores (sometimes even a co-branded fast food inside). From an investment standpoint, a well-located gas station with a strong operator and a long fuel supply agreement can be a lucrative NNN hold. They offer high yields relative to other categories, reflecting the specialized nature of the business and environmental responsibilities (which are the tenant’s in an NNN). Given the slow transition to EVs and the ability of gas station convenience stores to adapt (selling EV charging, expanding retail inside), these assets are expected to remain viable for many years. They are a classic example of an “essential service” on the road.

Automotive Services & Parts

Automotive service centers and parts retailers cater to the huge vehicle fleet on the road. From oil changes to tire replacements and selling DIY parts, these businesses provide hands-on services that can’t be done online. Many operate under franchise models or as corporate chains, and they favor NNN leases for their roadside real estate. These properties are typically mid-sized retail or flex buildings with service bays or showroom areas. They attract investors with their reliable demand (people need to maintain cars in any economy) and relatively stable tenant footprints. Key players include:

Jiffy Lube – The largest quick oil-change franchise, with over 2,000 locations across North America. Backed by Shell Oil, Jiffy Lube shops are typically 3-4 bay service centers on pad sites or hard corners. NNN investment appeal: Jiffy Lube franchises sign long-term NNN leases (often 10-15 years) and handle all site maintenance. These are true “10-minute oil change” stops that see a steady stream of drivers for essential services like oil, filters, and inspections. For investors, a Jiffy Lube property offers a stable, need-based tenant – cars require regular oil changes regardless of economic conditions. The Shell backing adds to confidence, as franchisees benefit from a strong brand and corporate support. The buildings are usually standardized and re-tenantable for other auto uses if needed. With the average vehicle age at record highs in the U.S., businesses like Jiffy Lube are staying busy, making their lease payments predictably dependable.
Take 5 Oil Change – A rapidly growing quick-lube chain (part of Driven Brands) with around 800+ locations (and hundreds more in development). Take 5 has popularized the drive-thru oil change where customers stay in the car. Properties are similar to Jiffy Lube in size and location. Why it’s notable: As a newer entrant, many Take 5 locations are corporate-operated or backed by Driven Brands (NASDAQ: DRVN), which also owns Meineke, Maaco, and other auto franchises. NNN leases for Take 5 often come through sale-leaseback deals as the chain expands. Investors are attracted to these for their fresh 15-year leases and the backing of a sizable franchisor. The service itself is highly relevant – even with electric vehicle growth, the majority of cars on the road need regular oil changes and maintenance. A Take 5 property can offer slightly higher cap rates (due to being newer/secondary markets in some cases), yet still provide a solid long-term bet on auto service demand. The franchise’s innovative twist (stay-in-your-car convenience) has fueled its expansion, indicating good prospects for continued rent stability and growth.
Firestone Complete Auto Care – A nationwide auto service chain (owned by Bridgestone) with over 1,700 locations. These centers offer tires, brakes, and general car repair, usually in 6-8 bay facilities in retail corridors. NNN profile: Firestone centers often occupy valuable corner real estate, and the tenant is the Bridgestone corporation – an $30+ billion global company – providing an excellent credit guarantee. Leases can be 15-20 years absolute NNN. Investors value Firestone deals for the strong credit and the essential nature of the business: tire replacements, brake fixes, etc., are not optional for drivers and cannot be done via mail order. Firestone’s longevity (over 90 years) also means many locations have decades of operating history in their communities. As an NNN owner, one can expect a hands-off experience while Firestone handles the property upkeep (they even handle environmental concerns like tire disposal). Given Bridgestone’s backing and the stores’ resilience to e-commerce (you can buy tires online, but you still need a place to install them), Firestone NNN assets are considered a lower-risk way to invest in the auto sector.
AutoZone (NYSE: AZO) and O’Reilly Auto Parts (NASDAQ: ORLY) – The two largest auto parts retailers in the U.S., with ~6,800 and ~6,400 U.S. stores respectively. These stores (typically 7,000-8,000 sq ft) sell replacement parts, tools, and accessories for cars, serving both do-it-yourself customers and professional mechanics. NNN investment notes: Auto parts stores are a staple of net lease portfolios. Both AutoZone and O’Reilly are investment-grade public companies that often do NNN sale-leasebacks on their new stores. Leases are commonly 15 years with built-in bumps. Investors are drawn to these for multiple reasons: vehicle maintenance is necessary (and as cars age, parts sales often increase), many customers need the immediacy of a local parts store when a car breaks down (something online retail can’t fully address), and these companies have proven growth records and profitability. Furthermore, during economic downturns, people tend to keep cars longer and buy parts to fix them rather than purchase new vehicles – actually boosting parts retailers’ business. All this makes AutoZone and O’Reilly relatively defensive retail tenants. As NNN properties, they’re typically low-management and have a modest footprint that could be backfilled by other retailers if needed. With healthy corporate financials and thousands of successful stores, these leases are often seen as “sleep well at night” assets in the auto segment.
Advance Auto Parts (NYSE: AAP) – Another big auto parts chain with ~4,700 stores (plus distribution centers). Advance Auto is slightly smaller than its aforementioned rivals and has faced more competitive headwinds, but it is still a significant player. Many Advance stores are in similar size buildings, often end caps of shopping strips. Investor perspective: Advance Auto Parts properties can offer higher cap rates, reflecting the company’s recent performance struggles and lower credit rating compared to AutoZone/O’Reilly. However, from a real estate standpoint, an Advance store in a good location is doing the same steady business of selling essential car parts. The leases are usually corporate-guaranteed as well. Some investors include Advance in their portfolio for diversification and yield – the risk can be mitigated if the specific store has solid sales or if the lease terms are favorable. Moreover, in a scenario where Advance were to consolidate, prime locations would likely be taken over by competitors, meaning the landlord could end up with an AutoZone or O’Reilly as a replacement tenant. So while an Advance Auto NNN deal requires careful vetting, it can still be a valuable part of an auto-focused NNN strategy.
Car Wash Chains (Mister Car Wash, etc.) – Automated car wash franchises and companies have grown in popularity, often occupying pad sites with a drive-thru car wash tunnel. Mister Car Wash (NYSE: MCW) is a leader with over 400 locations, alongside regional players and franchise concepts. NNN dynamics: Many modern car washes do sale-leasebacks to recycle capital after building a new location. These leases tend to be 20 years absolute NNN. The car wash model now includes membership programs (unlimited washes per month), creating stable recurring revenue for tenants. Investors considering car wash properties look at the tenant’s track record and market position. Mister Car Wash, for instance, is a public company with significant scale, providing more confidence than a small independent operator. Car washes are not very Amazon-susceptible – you can’t wash a physical car online – and as Americans keep cars longer, keeping them clean is still a routine expense people undertake. One must consider environmental and water use aspects (usually tenant’s responsibility in NNN). Overall, a well-located express car wash with a proven operator can offer a nice yield and a reasonable expectation of long-term occupancy, making it an intriguing NNN asset type in the auto sector.

Bank Branches & Financial Services

Bank branches are another category of NNN property commonly found on prime corners and commercial strips. Even as digital banking rises, major banks continue to maintain thousands of branches to serve customers and fulfill marketing presence. Branch buildings are often on ground leases or owned by the bank and sold with a leaseback. These tenants usually have excellent credit (investment-grade or better) and pay modest rent relative to their deposit base, making them secure from an investor standpoint. Important players include:

Chase Bank (JPMorgan Chase & Co., NYSE: JPM) – The largest U.S. bank by assets, with over 5,100 branches nationwide. Chase has aggressively expanded its branch network in recent years, entering new states and updating older locations. NNN investment merits: A Chase ground lease or NNN lease is backed by one of the strongest financial institutions in the world (JPMorgan’s credit is rated AA-). Branch leases often run 20 years. Investors essentially get a very high-credit tenant paying rent that’s a rounding error in their balance sheet – meaning the risk of default or closure during the lease term is low, especially in core locations. Chase branches often include drive-thrus or significant ATM installations, indicating the bank’s commitment to customer convenience. While banking transactions have moved online, branches still fulfill critical roles (consultations, business services, account setup, community presence). From an investor view, the main consideration is long-term relevance of the branch, but Chase’s strategy shows that it believes in physical locations for the long haul. Thus, a Chase-leased property provides bond-like security with the upside of underlying real estate value on a prime corner.
Bank of America (NYSE: BAC) – Another banking giant, with roughly 3,700 financial centers across the country. Bank of America often signs NNN leases for branches in grocery-anchored centers or does ground leases for stand-alone pads. Why investors consider it: Bank of America carries an A- credit rating and is a “too big to fail” institution, translating to extremely low default risk on leases. A BofA branch provides essential banking and advisory services, and the company continues opening new locations selectively, indicating branches remain part of its omni-channel approach. For NNN owners, a BofA lease offers a long-term occupant that typically keeps the property in excellent condition (banks maintain appearances well). Rental rates are usually modest relative to property value, since banks negotiate good deals, but the trade-off is unparalleled security of income. As an investor, one must accept that growth in rent might be minimal (some older bank leases lack bumps) and that at end of term the highest and best use could change if branch strategy evolves. Still, many see having a Bank of America or similar credit on their rent roll as a cornerstone investment – dependable and low-management.
Wells Fargo (NYSE: WFC) – Wells Fargo operates about 4,700 branches, and like its peers, it has been optimizing its network. Wells Fargo branches in NNN form provide similar benefits: strong credit (A-rated), long-term leases, and core retail locations. NNN specifics: Wells Fargo has consolidated some branches, but generally in over-banked areas; profitable, well-located branches are here to stay for the foreseeable future. An investor buying a property leased to Wells Fargo is essentially buying a corporate bond with real estate collateral. Lease structures vary (some older ones might be double net, where owner handles roof/structure), but newer deals are absolute NNN. As with all banks, there’s inherent internet resistance – certain transactions and services still drive people to branches, and many customers simply prefer in-person banking for big decisions. Plus, the presence of a branch is a huge advertising billboard for the bank. From a portfolio perspective, a Wells Fargo or any top 4 bank branch can add diversification outside of retail/food uses while still offering an “essential” community service tenant.
Regional and Local Banks – In addition to the national banks, many regional banks (Truist, PNC, US Bank, TD Bank, etc.) and even credit unions have branch networks that yield NNN opportunities. For example, Truist (NYSE: TFC) has about 2,100 branches, PNC (NYSE: PNC) ~2,600 branches, and Toronto-Dominion’s TD Bank (NYSE: TD) around 1,100 U.S. branches. Investment view: Leases from these institutions can be just as secure as the big banks, often with slightly higher cap rates simply because they’re not as globally known. A credit union lease might not be rated, but if it’s a top credit union with a strong member base, the risk can be minimal. Investors often find great value in regional bank branches: for instance, a corner branch of a well-established state bank could have a 15-year NNN lease and offer, say, a 5.5% cap (higher than a Chase at 4.5%), but still carry excellent financial stability. The key is to assess the health of the bank or credit union – loan portfolio, deposit growth, etc. – akin to checking a corporate tenant’s financials. Many regional banks have merged and grown, which can add complexity (lease might be with a predecessor entity initially). Nonetheless, a diversified NNN portfolio might include a mix of big-name bank credits and regional ones to balance yield and security. All benefit from the inherent stickiness of branch banking for certain services and customer segments.

Discount & Dollar Stores

Discount retail and dollar stores have proliferated across the U.S., becoming staples in both rural and urban communities. These retailers focus on low price points and convenience, often occupying smaller footprint stores (7,000 – 20,000 sq ft). They are extremely “recession-resistant” – in downturns, more shoppers flock to dollar stores, and in good times, they keep coming for the bargains. From an NNN investment standpoint, dollar stores are among the most common offerings, known for their simple buildings, corporate guarantees, and widespread demand. Key brands include:

Dollar General (NYSE: DG) – With over 20,000 stores, Dollar General is the country’s largest dollar store chain and one of the fastest-growing retailers. Stores are typically ~7,500 sq ft free-standing buildings in small towns and suburban neighborhoods. NNN investment all-star: Dollar General is often considered a backbone of the net lease market. The company frequently develops new stores via build-to-suit deals, selling them to NNN investors upon opening. Leases are commonly 15 years, absolute NNN, guaranteed by Dollar General’s corporate entity (rated BBB). Investors are drawn to DG for its massive scale and necessity-based inventory (household goods, food, seasonal items). These stores thrive in areas with limited retail, and even in competitive areas, their convenience and low prices draw steady traffic. Dollar General’s consistent expansion (hundreds of new stores every year) speaks to the resilience of its model. For investors, a Dollar General provides a relatively high cap rate (often 6-7% for new builds in secondary markets) with the comfort of a Fortune 500 tenant. They require minimal management and usually release well if ever vacated (the buildings can be re-tenanted by other retailers or even public facilities). In short, DG offers an attractive balance of credit, stability, and yield, making it a top pick for many NNN portfolios.
Dollar Tree & Family Dollar (NASDAQ: DLTR) – Dollar Tree, Inc. operates about 16,500 stores across the Dollar Tree and Family Dollar brands after a 2015 merger. Dollar Tree stores (7,000+ locations) traditionally sold everything for $1 (now $1.25), while Family Dollar (~8,000 stores) is a general discount variety store. NNN perspective: Both brands present solid net lease opportunities. Dollar Tree’s standalone stores (typically ~10,000 sq ft) and Family Dollar’s (~8,000 sq ft) are often in small shopping centers or standalone in underserved areas. Leases tend to be 10-15 years, NNN, with corporate guarantees (Dollar Tree, Inc. is a Fortune 200 company). Investors like the stability of these tenants – they sell everyday necessities at low prices, attracting a broad customer base including cost-conscious shoppers and those with limited access to larger retailers. Family Dollar sometimes co-brands with Dollar Tree in new “combo” stores, showing adaptability. From a risk perspective, Family Dollar has had some performance struggles in certain markets, but parent company support remains strong, and the continued demand for discount retail buffers the downside. For an investor, acquiring a Dollar Tree or Family Dollar NNN property can offer a slightly higher cap rate than Dollar General, with the trade-off of a split brand focus. However, given the company’s moves to optimize store formats and pricing, many see the combined Dollar Tree/Family Dollar as a solid bet for the long run. It’s not uncommon to find portfolios of these stores being traded, underlining their prevalence in NNN investing.
Five Below (NASDAQ: FIVE) – A fast-growing “$5-and-under” (now expanded to some higher price points) teen and tween-focused retailer with about 1,300+ stores. Five Below stores (~8,000–10,000 sq ft) are typically located in power centers or high-traffic retail areas. Investment appeal: Five Below brings a different twist to dollar retail – a trend-driven, fun merchandise mix that draws a younger crowd. The company is publicly traded and expanding rapidly (opening 150+ stores per year recently). Net leases with Five Below are often corporate-backed and 10 years in length, sometimes NN (landlord may retain roof/structure) or NNN with maintenance obligations negotiated. Investors who have added Five Below to their portfolios like the brand’s strong sales growth and niche (discount retail with a “Treasure hunt” element akin to a mini-TJMaxx for cheap gadgets, candy, and toys). It’s more discretionary than Dollar General, so performance ties a bit more to economic conditions, but its value price points have given it resilience (even when budgets are tight, $5 impulse buys are manageable). As an NNN tenant, Five Below is considered up-and-coming – many new retail developments court them as an anchor co-tenant alongside staples like TJX companies. For investors, this means the credit is good (albeit not as high as grocers or pharmacies), the leases provide stable base term income, and the real estate is usually in vibrant retail nodes. Five Below might carry slightly higher risk, but also higher growth potential, making it a popular choice for diversification in a net lease portfolio.
Big Lots (NYSE: BIG) – A discount closeout retailer with around 1,400 stores in the U.S. Big Lots stores (~25,000–40,000 sq ft) sell furniture, home goods, groceries, and seasonal items at discount prices. They often anchor strip centers in middle-market trade areas. NNN overview: Big Lots has done sale-leaseback transactions on many of its stores, creating NNN investment product. Lease terms are typically 15 years with corporate guarantees. Investors may find Big Lots properties at higher cap rates, reflecting the company’s more challenged position in retail and BB-rated credit. However, Big Lots fills an interesting niche between dollar stores and full-line retailers, and it has a furniture financing business that drives traffic. As an NNN tenant, Big Lots provides steady base rent and usually maintains its stores well (since they also operate as mini warehouses for furniture). These deals require a bit more monitoring of the retailer’s financial health and local store performance. Some investors include Big Lots in a portfolio for the yield and as a potential value-add play (the buildings could later be repositioned to other large-format uses if Big Lots were to vacate). Overall, while not as bulletproof as a Dollar General, a strong-performing Big Lots store can still be a durable income asset, especially in markets where it faces little direct competition in the closeout space.

Top NNN Franchise Investment Tiers

Now that we’ve covered franchises by sector, which brands stand out as the best overall NNN investment opportunities? Below is a ranked tier list of top NNN franchise tenants across all categories, based on factors like brand popularity, resistance to online disruption, unit growth, creditworthiness/backing, and build-to-suit (BTS) leasing potential. Tier 1 represents the “blue-chip” NNN tenants, Tier 2 are strong performers just below the top, and Tier 3 are solid opportunities that may have slightly higher risk or niche appeal.

Tier 1 – Premier NNN Franchise Tenants

McDonald’s: The gold standard of NNN tenants. Unmatched global brand, A-grade corporate credit, and a recession-proof, internet-proof model make McDonald’s ground leases highly sought after. Virtually always a safe long-term bet for steady growth and renewal.
Starbucks: Ubiquitous coffee titan with investment-grade credit and a loyal daily customer base. Starbucks’ focus on drive-thru and mobile order pickup keeps it future-proof. It combines strong corporate guarantees with a product that people consume habitually, ensuring ongoing foot traffic.
Chick-fil-A: Although private, Chick-fil-A’s sales per store are #1 in the industry and its brand love is immense. They carefully select sites and sign long leases. Investors treat Chick-fil-A ground leases as trophy assets due to the chain’s phenomenal popularity, unit economics, and virtually guaranteed success at any open location.
Walmart: The largest retailer in the nation with an essential goods focus. Walmart’s rare NNN ground leases carry AA credit behind them. The stores are critical infrastructure for communities, and Walmart’s embrace of online-order-pickup only reinforced the importance of its physical sites. A Walmart lease is as close to “guaranteed” rent as it gets in retail.
Home Depot: The top home improvement chain, rated A/A2. Home Depot stores anchor retail power centers and are Amazon-proof (demand for immediate home repair goods and pro supplies). As a tenant, Home Depot brings very high credit quality and long-term commitment — many locations become essentially irreplaceable fixtures in their markets.
CVS Pharmacy: A leading drugstore chain (CVS Health is BBB+ rated) with nearly 10,000 locations, often on corner outparcels. CVS stores provide essential prescriptions and healthcare items, insulating them from e-commerce to a large extent. Corporate-backed leases and the “need-based” nature of pharmacies make CVS one of the most reliable NNN tenants.
Walgreens: Another top drugstore (Walgreens Boots Alliance, BBB credit) with a coast-to-coast presence. Walgreens offers a similar profile to CVS – essential health goods and pharmacy services – and commonly has absolute NNN leases on stand-alone stores. A Walgreens in a prime location with a long lease is considered rock-solid, benefiting from the steady demand for medications and convenience items.

Tier 2 – Strong and Reliable NNN Tenants

Taco Bell: A star QSR performer backed by Yum! Brands. Very popular with younger demographics and a late-night staple, Taco Bell’s corporate or franchise leases are long-term and include periodic increases. It’s a franchise with a strong parent guarantee and is highly adaptive (menu innovation, digital ordering) – a top-tier QSR just shy of the “absolute safest” group.
Chipotle Mexican Grill: An all-corporate lease tenant with an A-rated credit and a booming fast-casual concept. Chipotle’s rapid growth of drive-thru “Chipotlanes” and consistent customer demand make it an excellent NNN tenant. It’s slightly smaller in footprint and count than Tier 1 giants, but its financial strength and popularity place it firmly in Tier 2.
Target & Lowe’s: Major big-box retailers with strong credit and proven resilience. Target brings an A-rated credit and a dynamic merchandise mix that drives constant traffic (especially with its successful omni-channel integration). Lowe’s, with A- credit, complements Home Depot in the home improvement arena. Both are highly reliable tenants for ground leases or anchor leases, with longevity and stable or growing store bases. They fall just below Tier 1 simply because Walmart/Home Depot slightly outshine them in scale or credit, but they are blue-chip in their own right.
Dollar General: Perhaps the most ubiquitous net lease tenant, Dollar General’s BB+ credit is offset by its incredible expansion and recession-resistant nature. Its stores thrive virtually everywhere, and the corporate guarantee on thousands of NNN leases provides comfort. Dollar General is often considered a “utility-like” retail tenant – not glamorous, but essential and consistently profitable. It’s Tier 2 due to credit rating, but otherwise a top performer.
7-Eleven: A convenience store giant that combines fuel sales with grab-and-go retail. With a massive corporate backing (private, investment-grade equivalent), 7-Eleven’s ground leases are about as steady as they come in the gas station world. They rank high thanks to the non-discretionary nature of their business (fuel, snacks, daily convenience) and strategic corner real estate. Slightly lower tier than pharmacies or QSR only because of long-term EV transition questions, but 7-Eleven’s adaptability keeps it firmly in Tier 2.
AutoZone / O’Reilly Auto Parts: The two leading auto parts chains collectively hold Tier 2 status. Both have investment-grade credit and benefit from the perpetual need for auto maintenance and parts – a segment with minimal online incursion (when your car breaks down, you often can’t wait for shipping). Their NNN leases are commonly 15 years and corporate-guaranteed. While not as flashy as a restaurant, these tenants are beloved by net lease investors for their dependability and strong financials.
JPMorgan Chase Bank: Representing big banks, Chase’s AA- credit and expansive branch network make it top of the class among financial tenants. A long-term ground lease with Chase offers ultra-safe income. Branches do face evolving usage, but Chase’s strategy of continued expansion and heavy investment in modernizing branches indicates staying power. Other national banks (BofA, Wells Fargo) would be analogous in strength. These fall in Tier 2 because while credit is Tier 1, the sector’s transformation is something to watch; nonetheless, they remain very safe, stable NNN tenants today.

Tier 3 – Solid NNN Opportunities (Moderate Risk/Growth)

Burger King & Popeyes: Major QSR brands under Restaurant Brands International. They offer strong name recognition and sizeable footprints, but rank a bit lower due to somewhat less consistent performance and franchisee-dependent credit. Burger King is ubiquitous but has had ups and downs in sales; Popeyes is growing fast (thanks to hits like its chicken sandwich) but is smaller in unit count. Still, both are backed by a large corporate franchisor (RBI, NYSE: QSR) and have global popularity, making their NNN leases generally reliable with slightly higher cap rates than Tier 1 or 2 QSR peers.
KFC (and Pizza Hut): Legacy Yum! Brands chains that, while still massive globally, have seen mixed results domestically. KFC remains a top fried chicken player and Pizza Hut (also Yum!) is still a big pizza franchisor. Both provide long-term NNN leases often franchisee-run. They land in Tier 3 because neither is the category leader in the US (Chick-fil-A and Domino’s take those crowns), and they’re working through brand revitalizations. However, as net lease tenants, a well-performing KFC or Pizza Hut (particularly the carryout/delivery-focused Pizza Hut formats) can be steady. The Yum! master lease guarantee on many franchise locations adds security. These are solid properties with prudent underwriting and often come at higher yields, reflecting moderate risk.
Domino’s Pizza: The king of delivery pizza has great corporate strength and sales, but its typical NNN locations are small and often franchisee-leased, which can mean varied credit quality. Domino’s also occasionally uses shorter lease terms. It’s Tier 3 because while the business is rock-solid (and indeed very “digital-forward”), individual leases depend on franchise operators. Nonetheless, the brand’s dominance in its space and continued store growth (particularly in carryout) make Domino’s NNN deals generally safe, just not as ironclad as a large corporate tenant. Many investors include Domino’s for portfolio diversification and are comforted by the brand’s essential status (people love pizza in any economy).
Planet Fitness: The budget gym leader with a strong national presence. We put Planet Fitness in Tier 3 mainly due to sector considerations – fitness centers did face COVID closures, and while Planet rebounded strongly, gyms have a bit more economic sensitivity than, say, fast food or groceries. That said, Planet Fitness has an excellent track record of growth, a franchise system backed by a public franchisor, and a service that can’t be fulfilled online. For investors, a Planet Fitness lease (often franchisee-operated) can offer good returns; the risk lies in local competition and maintaining membership levels. Its popularity among casual gym-goers and very affordable pricing give it an edge to remain a fixture in communities, securing its rent payments.
Dunkin’, Arby’s & Sonic (Inspire Brands): A trio of franchise brands under the Inspire Brands umbrella that are strong but not quite top-tier. Dunkin’ is a daily ritual in many regions, Arby’s has a steady niche, and Sonic has a unique drive-in model – all are solid performers. They rank Tier 3 because their lease guarantees are typically franchisee or private-equity backed (Inspire is privately held) and their performance can be market-specific. Yet each brings internet-resistant qualities: Dunkin’ has the morning coffee run, Arby’s and Sonic offer distinct food you can’t get elsewhere. Net lease investors often find these tenants reliable, and cap rates may be a bit higher, offering more yield. Essentially, they’re the “second string” of big QSR: not the absolute safest, but very serviceable, and in many cases with improving prospects (e.g., Dunkin’ expanding nationally, Arby’s updating image, Sonic expanding drive-thrus).
Raising Cane’s & Dutch Bros: Two of the hottest emerging brands in food and beverage, both expanding rapidly with strong fan followings. They’re Tier 3 largely due to their shorter track record and smaller current scale. Raising Cane’s is private with phenomenal sales volumes in its ~700 units – its new leases trade like Tier 1, but until it’s more established nationwide, we place it here (knowing it might be Tier 2 soon). Dutch Bros is public and growing fast (700+ stands) with great unit economics, but it’s still regional and its franchise-equivalent risk (though they’re mostly corporate stores) is a tad higher until it matures. Both brands offer NNN investors growth potential: acquiring a Cane’s or Dutch Bros now means getting in early with a tenant that could very well become Tier 1 or 2 in a few years. They have high internet-resilience and strong demand trends. Thus, while they carry a bit more risk today, their trajectory and dynamic customer base make them very attractive “growth NNN” candidates.