NNN Chick-Fil-A for Sale

Investing in commercial real estate, particularly in NNN (triple net) net lease properties, offers a reliable way to earn passive income with zero landlord responsibilities. Among the most coveted opportunities in this space are Chick-fil-A NNN properties. These investment-grade assets stand out for their ground lease structure, stable tenants, and robust financial returns.

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NNN Chick-Fil-A Overview

A typical Chick-fil-A ground lease is structured as an absolute single-tenant NNN ground lease, meaning the tenant is fully responsible for all property expenses, including taxes, insurance, maintenance, and repairs—making it a truly passive investment for the landlord. This lease type typically runs for 15 to 20 years with multiple 5-year renewal options and is usually non-cancellable during the initial term. What distinguishes Chick-fil-A leases from other quick service restaurant (QSR) guarantors is that the corporate entity, Chick-fil-A, Inc. guarantees the lease rather than the franchisee, offering strong tenant credit and minimal default risk.

In a ground lease arrangement, the landowner (investor) retains ownership of the land, while Chick-fil-A builds and owns the structure during the lease term. However, when the lease ends, ownership of the building typically reverts to the landowner, unless otherwise agreed. Rent is set at commencement with rent increases typically every five years, often around 7–10%. Because of Chick-fil-A’s strong brand, conservative site selection, and high-traffic locations, these properties command low cap rates, usually in the 4.0% to 4.75% range.

The company exercises tight control over site development, ensuring each location meets strict performance and demographic criteria, which further enhances the long-term value of the real estate.

Why Chick-Fil-A

Ground Lease Structure: Most Chick-fil-A properties are structured as a ground lease. In this model, the tenant pays rent and handles all property costs, but does not own the land. Investors enjoy long-term income while minimizing liability and management responsibilities. At lease maturity, land ownership remains with the investor, often with a valuable building on it.
Corporate Guarantee: Each Chick-fil-A lease includes a corporate guarantee by Chick-fil-A, Inc. This adds a layer of financial security for investors. The strength of this private company, with its annual sales reaching billions, ensures that rent payments are rarely missed, reducing vacancy risk.
Lease Terms & Escalations: The typical Chick-fil-A NNN lease has a 20-year base term, often with multiple 5-year renewal options. Many of these agreements include rental escalations, ensuring the rent and the NOI grow steadily over time. This creates an inflation-resistant income stream.

Strong Cap Rates for Long Term Wealth

Understanding cap rates is essential when evaluating NNN investment properties. Chick-fil-A properties often have a slightly lower cap rate and NOI than comparable fast-food tenants due to their low-risk profile. However, these returns are offset by the tenant’s reliability and the lease structure’s long-term financial predictability.

A cap rate between 4.00% and 5.00% is typical for Chick-fil-A NNN assets. If the subject property is on a hard corner, has a larger lot size, high vehicle per day (VPD) count, or is even located in a tax-free state like Florida or Texas, a brand new property can have a sale price with an even lower cap rate and lower cash flow.

Location Strategy & Demographics

Chick-fil-A restaurants are strategically positioned in high-traffic, high-income areas, frequently near shopping centers or highway exits. The brand thrives in regions with strong demographics and favorable foot traffic. Site selection typically focuses on areas with high average household income, often aligning with key Southern Baptist markets in the Southeast and beyond.

Investors should also consider demographic data such as population growth, income levels, and age distribution. Locations near universities, business districts, and suburban centers tend to perform particularly well.

Market Availability and Regional Breakdown

Southeast: As Chick-fil-A’s birthplace, this region has many established, high-performing locations. Many offer 20-year ground leases and enjoy brand loyalty, making them ideal for long-term investments.

Southwest: With rising demand for fast-food and population growth, this region is seeing new developments, often with rental escalations built into long-term leases.

Midwest: Growing urban and suburban areas support continued Chick-fil-A expansion. These markets are ideal for buyers seeking new construction with stable returns.

Northwest: A newer region for Chick-fil-A, but rapidly growing. Locations here often include modern restaurant designs and benefit from strong cap rates due to lower local competition.

Current Market Trends for NNN Chick-Fil-A

Investors are increasingly looking toward Chick-fil-A NNN lease properties as economic uncertainty pushes capital toward reliable, income-producing assets. Despite market fluctuations, these properties have consistently delivered record revenue and outperform many peer brands.

Buyers are drawn to:

National brand recognition

High-traffic sites

Long-term lease security

Consistent annual sales

Tax efficiency through exchange transactions

Many investors opt for 1031 Exchanges, using Chick-fil-A NNN assets as replacement properties to defer capital gains while securing a stable yield.

Due Diligence and Risk Management

Before purchasing a Chick-fil-A NNN property, thorough due diligence is essential. Key areas to investigate include:

Lease agreement details, including term length, escalations, and renewal options
The property’s location and average household income in the surrounding area
Tenant financials and rent coverage ratios
Current and projected cap rate performance
Compliance with zoning, title, and legal standards

While Chick-fil-A leases offer high real estate stability, no investment is risk-free. Market dynamics, tenant relocation, or changes in consumer preferences can affect performance.

Conclusion: Is a Chick-fil-A NNN Lease Right for You?

Whether you’re an experienced investor or conducting your first real estate transaction, a Chick-fil-A NNN property may offer the stability, return profile, and minimal management you’re seeking. With a long-term ground lease, rental escalations, and strong cap rate fundamentals, it’s easy to see why these assets continue to outperform in a competitive market.

As always, work with experienced brokers, legal counsel, and tax advisors when conducting a real estate acquisition. But with the right due diligence, Chick-fil-A NNN properties can be a cornerstone in your portfolio for years to come.

Questions about NNN Properties for Sale?

Choosing Triple Net Companies, Inc. means choosing a partner with decades of exclusive buyer representation, a proven track record, and access to the best properties and financing options.