Overview

Seeing a steady rise in popularity over the last few decades, Starbuck’s has filled out the high-end breakfast niche to become an industry leader. Offering superior coffee, branding, prime real estate, and a healthy balance sheet to boast, they continue to delight shareholders and net lease holders alike. When net leasing, keep in mind that Starbuck’s path to market success is largely based on smart property selections, equally as important as the café experience is to enhancing consumer satisfaction. This understanding has led to positive returns for net lease investors in the past. Generally speaking, Starbucks may offer either NN or NNN agreements with ten to twenty year lease terms, alongside rent price bumps every 5 years. They are nearing twelve thousand different locations in the United States now, and can be found equally in both rural and city locations. Often times they are placed strategically to and from main commuter routes. Standard building sizes can span anywhere between 1900 to 2100 square feet, surrounded by approximately one half to one acre lots. These will also vary by property type and location, with a typical design integrating the drive through window.