What cap rates do retail pad sites trade at in Florida?

Florida pad sites trade from 3.75% (Chick-fil-A, McDonald's corporate) to 5.5% (Wawa, 7-Eleven). Starbucks runs 4.0–5.0%, bank branches (Chase, BofA, Wells Fargo) 4.25–5.25%. The tighter the cap rate, the stronger the credit and longer the weighted average lease term.

What is a retail pad site or outparcel?

A pad site (or outparcel) is a freestanding building located on a separate parcel at the perimeter of a larger shopping center. The pad site tenant benefits from the anchor's traffic while the investor owns fee simple land and building. Most Florida pad sites are absolute NNN — the tenant pays all taxes, insurance, and maintenance.

Why do grocery-anchored pad sites command tight cap rates?

Grocery anchors (Publix, Kroger, Winn-Dixie) generate 25,000–50,000+ customer visits per week. Pad site tenants — coffee, fast food, banks — capture that traffic. The anchor co-tenancy creates a captive customer base that makes relocation economically irrational, which drives investor demand and compresses cap rates.

Retail Pad Site Investing Florida 2026

What Makes a Pad Site Different from Inline Retail

An outparcel (pad site) is a freestanding building on its own parcel, located at the perimeter of a larger shopping center. Unlike inline retail tenants who depend on foot traffic within the center, pad site tenants have direct highway visibility and drive-through access — which is why QSR chains, banks, and coffee brands prioritize outparcels over in-line space.

For the investor, the difference is structural: you own fee simple land and building. The tenant operates under an absolute NNN lease — they pay property taxes, insurance, and all maintenance including roof and structure. The landlord collects checks and does nothing else.

Zero

Landlord Duties

absolute NNN — tenant pays all

Fee Simple

Ownership

Florida is Publix country. With 800+ stores and the highest customer loyalty scores of any grocery chain in the US, a Publix-anchored center generates 25,000–50,000 weekly visits. Every pad site at that center — the Starbucks, the Chick-fil-A, the Chase branch — captures a portion of that captive customer flow.

This co-tenancy is why pad site tenants compete intensely for outparcel locations at grocery-anchored centers. It's also why investors accept 3.75–5.0% cap rates: the traffic-driven performance of these tenants makes default risk negligible, and the investment-grade guarantees make it genuinely bond-like.

The Florida Pad Site Formula

Publix anchor + high-traffic corner + investment-grade tenant + absolute NNN lease = the closest thing to passive income in commercial real estate. The tradeoff is price — the market knows this, and it's priced accordingly at 3.75–5.5%.

Wawa: Florida's Fastest-Growing Pad Site Tenant

Wawa is executing an aggressive Florida expansion plan, opening 50+ locations per year across the state. Their stores are larger (4,000–6,000 SF) than traditional convenience stores, serving as destination locations with fresh food, fuel, and high transaction volume. Wawa's PE-backed expansion creates consistent new NNN inventory at 4.5–5.5% cap rates.

For investors seeking a credit-tenant pad site with more cap rate than a Starbucks or bank branch — but a similarly irreplaceable location — Wawa is one of the most compelling options in Florida NNN today.

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Pad Site Underwriting Checklist

Corporate vs. franchisee guaranty

A McDonald's corporate-owned store carries investment-grade credit. A franchisee-operated location with a personal guaranty is a different underwriting. Always confirm the guarantor entity.

Rent bumps — absolute vs. percentage

Most pad site leases include 10% bumps every 5 years. Some QSR leases use CPI. A 10% bump every 5 years over a 20-year lease is the equivalent of ~1.9% annual rent growth — build this into your IRR model.

Drive-through configuration and visibility

Corner locations with two-directional access command 15–25 bps tighter cap rates than interior pads. Verify the site plan allows drive-through stacking (a minimum of 8–10 cars) before acquiring.

Remaining term and option periods

A Chick-fil-A with 3 years of primary term remaining is not the same investment as one with 17 years. Price accordingly — or target assets with 10+ years of primary term for maximum marketability.

Ground lease vs. fee simple

Some pad sites are ground leases (you own the land, the tenant owns the building). Ground lease valuations are more complex and buyer pools are narrower. Confirm fee simple ownership.

Exclusivity clauses affecting future anchor

Some pad site leases include exclusivity clauses that restrict what the anchor can sell. A Starbucks exclusivity could limit a future grocery anchor from selling coffee. Review lease riders carefully.

Frequently Asked Questions

How do I find retail pad site deals in Florida?

Most high-quality pad sites trade via NNN broker networks — not LoopNet. Chick-fil-A, Starbucks, and bank pad sites are actively marketed by NNN-specialist brokers and often change hands before public listing. Build a relationship with a Florida NNN broker who has direct relationships with major QSR and bank real estate teams.

Are pad sites good 1031 exchange replacement properties?

Yes — they're one of the most popular 1031 replacement categories. The zero-management absolute NNN structure suits sellers of active assets (apartments, shopping centers) who want a passive hold. The 45-day identification window is manageable given the active transaction market.

What's the difference between an absolute NNN and an NNN lease for pad sites?

An absolute NNN lease places all obligations — including roof, structure, and parking lot — on the tenant. A standard NNN lease may reserve roof and structure responsibility for the landlord. Most major brand pad sites (Chick-fil-A, Starbucks, Wawa) use absolute NNN. Verify this in the lease before pricing the asset.

Buyer GuideHow to Find NNN Properties in Florida
MultifamilyFlorida Multifamily Investing Guide
Strategy GuideSale-Leaseback Florida CRE Guide
FinanceCommercial Real Estate Financing Florida

Retail Pad Site Investing in Florida: Outparcel NNN at Grocery-Anchored Centers

What Makes a Pad Site Different from Inline Retail

Pad Site Cap Rates by Tenant — Florida 2026

Chick-fil-A

Starbucks

Chase / BofA / Wells Fargo

Wawa / 7-Eleven / Casey's

McDonald's / Burger King

The Publix Co-Tenancy Advantage