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  7-Eleven


Average Property & Lease

Average Sale Price$2,378,221
CAP Rate (12mo avg with 10+ lease term)4.91%
NOI$125,094
$/Square Foot$850.00
Building Size2,500 - 3,500 sf
Lot SizeVaires (Gas/Non-Gas)
Lease Term10 - 20 Years
Escalations10% Every 5 Years
CREDIT RATING
AA-
S&P
Baa1
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

The world's largest operator, franchisor, and licensor of convenience stores, 7-Eleven is well-established in the net lease investment sales market. Most 7-Eleven stores, often times corner locations, have high visibility and excellent access. Additionally, many 7-Eleven locations are also gasoline retailers with filling stations.

From a net lease investment point of view, it is important to recognize the differences between walk-up, gas, and non-gas 7-Eleven locations. For all location types, 7-Eleven units typically sit on sites witnessing 25,000 passing vehicles daily. This and other real estate requirements for 7-Eleven sites significantly enhance the underlying value of these net lease properties. In regards to the typical gas station site, 7-Eleven prefers to ground lease corner locations or Shopping Center outparcel sites with 0.8 - 1.0 acre of land in high traffic areas. Leases are generally 10-20 years in length and have rent bumps of 10%-15% every 5 years. 7-Eleven is currently in expansion mode of their non-gas C-store concept, with sites fitting into small retail strip centers, retail condo space as well as single tenant locations. This concept allows the retailer to fit on smaller parcels with 1,000 - 2,500 SF buildings, which could allow investors an opportunity to get smaller spaces in high barrier to entry market.

Pros

Cons

  • Strong credit and brand recognition
  • If fee simple ownership - accelerated depreciation is available
  • Corporate guarantee
  • Corner locations
  • Environmental concerns with filing station locations
  • Ground leases do not allow for depreciation
  • C-store sites generally located on small land
Tenant Description

7-Eleven started out in 1927 and has now grown and evolved into an international chain of convenience stores, operating nearly 7,800 company-owned and franchised stores in North America. 7-Eleven is privately owned and is a wholly-owned subsidiary of Seven-Eleven Japan Co., Ltd in Tokyo, Japan. As the world's largest convenience retailer, 7-Eleven is globally known for its customer favorites such as fresh-brewed coffee, Slurpee® and Big Gulp® beverages, and Super Big Bite®.

7-Eleven stores are conveniently located on urban corners and throughout suburban neighborhoods. Many 7-Eleven locations provide fueling stations, making it one of North America's largest independent gasoline retailers. 7-Eleven stores meet the needs of convenience-oriented customers by providing a broad selection of fresh, high quality products and services at everyday fair prices. A typical 7-Eleven store in the United States has between 2,400 and 3,000 square feet, and carries about 2,500 different items.

In March 2016, 7-Eleven, Inc announced that they are bringing back its successful Zero Franchise Fee initiative as an ongoing opportunity for business owners. In the program, 7-Eleven will waive the franchise fee on a select number of its U.S. stores available for franchising, a savings of up to $80,000. Last year, the Zero Franchise Fee initiative allowed 100 people to become new 7-Eleven store-owners or multiple store-owners.

7-Eleven has been honored by numerous companies and organizations throughout its 88 years in business. 7-Eleven, Inc. joined BrandZ's 10th annual list of the most valuable global brands for 2015, the only convenience-store chain to make the list.
7-ELEVEN TREND
CAP Rate

2015 avg: 5.15%

2016 avg: 5.03%

RECENT SALES

Dallas, TX

$4,435,689 | 4.50%

Norfolk, VA

$1,760,000 | 5.00%

MORE INFO
www.7-eleven.com