We’ve seen the real estate market in the US take a significant tilt as investors now prefer to key into triple net properties. The reason for this dramatic shift is quite simple – most investors want a profitable investment form that’s low-risk. With NNN properties offering these benefits and more, people are making purchases like never before.
However, newbie investors looking to partake in this “gold mine” of a market are concerned about what property forms are worth the investment. This consideration is crucial as it determines the success of a purchased NNN property in the long run.
That said, taking a look at the market demographics should do some good for these investors. If they look hard enough, they’ll notice that NNN properties that have amassed a reputation and are favored by seasoned investors are those from the stables of established brands.
Why?
It’s simple. While these businesses are based in excellent locations, investors that purchase these NNN properties are assured of getting significant returns on their investment. For some context, favored NNNs include those from recognized entities like Starbucks, 7-Eleven, etcetera.
With both entities featuring a massive clientele, we’ll be focusing on Starbucks. Below, we’ll be taking a look at the reasons why Starbucks for sale properties are considered hot prospects. Additionally, we’ll also give budding investors looking to acquire a Starbucks for sale, some crucial factors to consider before going ahead with their purchase decision.
Are you ready to partner with an entity that’s revered for its products across the United States? Well, that journey starts NOW!
The Genesis of Proceedings: Why Are Starbucks NNN Properties Revered?
Since its launch in 1971, Starbucks has gone from strength to strength. According to a recent report (September 2020), Starbucks has a mind-boggling 32,660 stores in over 83 countries. A top-notch entity known for its milky espressos, snacks, and pastries, Starbucks has left an indelible mark in the foods and beverage industry in the United States.
That said, it’s important to note that Starbucks’ rise to stardom didn’t come by accident. For starters, they were strategic in picking out their store locations. While some might think that Starbucks is popular due to their beverages, top-notch business acumen is what has seen them thrive to this day.
Placed along main commuter routes in the USA, it’s easy to see why a “Starbucks for sale near me” query on the Internet brings up so many suggestions. With spacious buildings to boot (1900 – 2100 ft), all Starbucks locations are fitted with a huge parking lot and a drive-thru window to cater to patrons’ varying needs.
With all these reasons mentioned above, seeking out a Starbucks property for sale might be all you need to get that profit margin you’ve always deemed impossible.
However, while a Starbucks NNN might look like a deal of the lifetime, exercising caution as an investor is sure to yield you some positives. When you’re calm enough to see things from a different standpoint, weighing your options carefully, there’s a lower chance that you’ll be on the losing side if you decide to purchase a Starbucks NNN.
Below, we’ll take a look at vital considerations to make before you put pen to paper on that Starbucks NNN lease.
Before the Starbucks NNN Purchase: Anything Crucial to Consider?
As with any investment form, adequate planning and readiness are vital. When you’re investing in something as versatile as real estate, you have to be conservative with your approach as a misstep can result in an investment falling like a “pack of dominos.”
Consequently, if you’d like to enter into a Starbucks for sale NNN lease agreement, you must weigh the following factors carefully:
Return on Investment
As an investor, your primary purpose in investing is to make a decent ROI in the long run. With this consideration at the fore, you must consider the estimated investment returns of your preferred Starbucks NNN.
It’s important to note that your ROI is dependent on several variables such as location, maintenance, and lease agreement. If, after taking a closer look at things you don’t feel so great about that Starbucks NNN, you might want to set your sights on something else.
Purchase Value
With Starbucks NNN properties coming off as a popular investment form, financing is another essential factor to have in mind. Since most Starbucks NNNs have outright purchase values of $2,000,000 and above, you’d need a convenient medium that’ll enable you to finance the purchase without hassles.
Thus, before you buy a Starbucks for sale in Florida, you might want to take a look at the property listings available on reputable sites like buynnnproperties.
Taking this action is vital as it enables you to sift through the best alternatives available and make an informed decision based on the financing you have at hand.
Lease Term
If you don’t have the funds to buy a Starbucks NNN outright, you can enter into a lease agreement instead. With Starbucks NNNs, you don’t have to settle for a short-term as it’ll invariably affect your income stream. How? Re-leasing, sometimes, might come off as expensive.
Thus, with some Starbucks properties coming with longer leases for up to 10 years, you’ll be better off entering an agreement of this nature.
However, if you’ll have to settle for a short-term lease, not all hope is lost. To make sure you come out on the other side with some positive dividends, reach a compromise with the owners for a reduced price. If you can achieve this, re-leasing no longer poses a threat.
Nearby Businesses and Traffic
Nearby businesses don’t have to be the competition as they’re instrumental in getting your Starbucks to run like a well-oiled machine. Since Starbucks is a famous beverage company in the US, let’s say that the nearby businesses are convenience stores and restaurants.
While this might look like a seeming negative, patrons of these businesses might need a coffee, and who knows, enter your Starbucks NNN to place an order. With the ensuing traffic that results from these entities operating simultaneously, your establishment is sure to make huge profits daily.
So, before you purchase a Starbucks for sale, scour the area and check for established businesses nearby. In case there’s a scarcity, it’s likely that the neighborhood isn’t business-friendly. Thus, you’re advised to steer clear and widen your horizons.
Parting Shot
Ranking 125th on the Fortune 500 isn’t just another milestone for Starbucks. It shows that they’ve led the way in the QSR market, and it’s not a surprise why investors are running towards this real estate form in 2021.
With Starbucks NNN properties, investors looking to make a large chunk of passive income can attain their goals.
However, just like any investment form, there are risks attached. To stay on top of things at any given point, factoring in the above considerations is essential before making that purchase or signing that lease agreement.
Before taking that first step, look at what buy NNN properties has to offer new and seasoned investors looking to take advantage of Starbucks NNNs.
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