McDonald's NNN Properties for Sale in Florida
McDonald's Corporation (NYSE: MCD) is one of the largest NNN net lease tenants in America with 13,000+ US locations. Most McDonald's transactions are ground leases where the tenant owns the building improvements on a long-term corporate-guaranteed land lease. McDonald's ground leases trade at premium cap rates due to the corporate credit, 20-year initial terms, and multiple renewal options.
Typical Cap Rate
4.75% - 5.50% (ground lease) / 5.25% - 6.00% (BTS)
Lease Term
20 years
Price Range
$2.5M - $6M+
Building Size
4,000 - 4,500 SF
Lot Size
0.50 - 1.00 acres
Credit Rating
S&P: BBB+
Investment Highlights
- Investment-grade corporate credit (S&P BBB+, Moody's A2)
- 20-year initial lease terms
- Ground lease structure — minimal landlord risk
- Prime signalized intersection real estate
- Corporate guarantee from McDonald's USA, LLC
- Dual drive-thru lanes on most new locations
Lease Structure
Typical McDonald's deal structure: 20-year ground lease with multiple 5-year options, corporate guarantee, absolute NNN to land. Rent bumps are commonly 7-10% every 5 years. Tenant owns the building improvements — landlord owns only the land. McDonald's rarely signs BTS NNN deals with the landlord owning the building — ground lease is strongly preferred.
McDonald's Tenant Profile
McDonald's Corporation is the largest fast-food chain globally with $25B+ in annual revenue and 13,000+ US stores (90%+ franchised). The company owns significant real estate and operates a hybrid franchise-royalty-rent model. Credit: S&P BBB+, Moody's A2 (solid investment grade). Extremely strong brand and competitive moat.
McDonald's in Florida
Florida has 900+ McDonald's locations. Ground lease deals in prime Central and South Florida intersections trade at 4.5-5.25% cap rates. Secondary markets and shorter-remaining-term deals trade at 5.5-6%. Most Florida McDonald's are corporate-guaranteed (not franchisee-guaranteed) which is critical for investment quality.
Why Buy McDonald's
- +One of the strongest corporate credits in net lease retail
- +20-year lease commitments with long-term renewal options
- +Premium intersections and pad sites
- +Ground lease structure = minimal landlord risk
- +Strong resale market when disposition comes
Considerations
- •Ground lease vs. fee simple structure significantly impacts returns
- •Verify corporate guarantee vs. franchisee guarantee
- •Tight cap rates mean limited current yield
- •Most prime sites already owned by REITs — inventory is limited
Related QSR Tenants
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