Triple net properties, or NNN properties, are an attractive real estate option for investors looking to expand their portfolios with a variety of property types. NNN leases can be applied to properties like retail, dining, offices, or industrial space. This means that acquiring NNN properties can truly diversify a portfolio with lower risks than other properties. When considering which types of properties to invest in for triple net leases, investors should consider fast food restaurants, such as Taco Bell.
Fast food restaurants see 50 million people per day in the United States, which means there is a strong and pre-existing customer base for this type of business. Because of this, they make a great candidate for NNN leases. Additionally, they can provide a consistent income from their rent payments over long periods. Learn about how you can find the right NNN deals and what you should look for in a Taco Bell net lease.
Finding the Right NNN Deal with Taco Bell Properties
One of the key priorities of real estate investors is to find the right deal that adds value to their portfolio and supports their long-term goals. Not every net lease property is suitable for every investor. Still, when evaluating your options, there are a few reasons to consider NNN lease properties like a Taco Bell or other food / quick service restaurants. These types of properties typically come with several key benefits that could make them the right fit:
- Creditworthy tenants with chain of fast food restaurants
- Stable monthly income
- Corporate-backed lease for at least ten years
- Investment diversification
- Low to no responsibility for maintenance of the property
These five benefits can make finding the right deal in an NNN net lease property for restaurants appealing for investors. Without the expense or time spent on maintaining properties, triple net leases make an excellent option for an investment. When combining the benefits of a NNN lease with the reliability of fast food restaurants like a Taco Bell, it can often become the right deal for your next commercial real estate property.
4 Things to Consider When Investing in a Taco Bell NNN For Sale
To maximize the benefits of triple net leases, investors often seek out properties that can attract high-credit corporations. These types of companies tend to need the least hands-on involvement from a landlord, which means investors can focus their efforts elsewhere. When working with a company like Taco Bell, a subsidiary of Yum Brands Inc, and other fast food restaurants, landlords can have a consistent income stream without all the work and headaches of other investment property types. Here are a few tips for finding the right Taco Bell for sale.
Location, location, location: When it comes to investing in any property, especially NNN lease properties, location is key. Specifically, with fast food restaurants like Taco Bell, the locations can impact their long-term success, so having a property in a highly populated, well-traveled area can be critical. If it’s easily accessible from highways or interstates and public transportation, that will make the location even more desirable to tenants. It can also be beneficial to do research into what other stores, restaurants, or businesses are nearby. If there are well-shopped strip malls, drugstores, or even industrial or commercial areas, these can increase the likelihood of customers coming through the Taco Bell doors.
Understand the market: If you’ve never invested in the restaurant industry before, looking into current market trends can help you understand what tenants may need. Technological advancements, alternative menu options, specialty beverages, and expanded kids’ choices are all some of the trends and adjustments restaurants have seen in recent years, with mobile ordering and low-interaction ordering like kiosks becoming more popular due to the COVID-19 pandemic. When you work with a real estate team that has expertise in the industry and the cap rate, you can collaborate with an advisor who will help you understand the market, its trends, and the current cap rate, so you have a better understanding going into the deal.
Learn about the tenant: If you’re interested in acquiring a Taco Bell net lease, you may already be aware of the popularity of the Crunchwrap Supreme and the Chalupa, but do you know about their financial history and how that particular restaurant has performed? With more than 5,500 Taco Bell locations, some may be a better investment opportunity than others, and understanding the history of the location you’re interested in purchasing can help with your decision. With this knowledge, you will have a better idea of how that Taco Bell location performs and how viable an investment this will be for you.
Know the terms of the net lease: If you’re acquiring a property that is already a Taco Bell net lease, you should understand the terms of the triple net lease. However, if you are buying a drive-thru restaurant you hope to convert into a Taco Bell in the future, you need to know what terms you want included. Each lease is unique, so even though most triple net properties pass on responsibilities for repairs, maintenance, lease property taxes, and insurance premiums to the tenant, you should know exactly what this particular Taco Bell net lease includes, to avoid any surprises down the road.
Work with Experts to Identify Taco Bell NNN Opportunities
At Sands Investment Group, our restaurants for sale brokers can work with you to identify the best Taco Bell NNN for sale, including potential 1031 exchange opportunities. Our team has experience working with Taco Bell NNN lease properties for sale, so we can help you move quickly on the best deals for your Taco Bell NNN lease investment goals. With experience in buying and selling fast food properties across the country, talk to a broker at Sands Investment Group know how to grow your portfolio with Taco Bell and other restaurants so you can achieve long-term gains from your investments. Call 844.4.SIG.NNN to have your questions answered as you consider whether a Taco Bell property is the right move for your investments.