Dutch Bros Coffee

Dutch Bros Coffee – Single-Tenant Net Lease Investment
Phoenix MSA, AZ | Drive-Thru Coffee Asset | Absolute NNN Ground Lease | Passive Income Opportunity

Overview
This investment features a standalone Dutch Bros Coffee in the Phoenix metropolitan area. The asset is backed by an absolute triple-net (NNN) ground lease, under which the tenant is responsible for all expenses, including taxes, insurance, maintenance, utilities, and site-level repairs. The lease includes built-in rent escalations every five years, offering passive income with inflation protection. Strategically positioned in a high-traffic area within the Phoenix MSA, this property presents a compelling opportunity for investors seeking net lease investment properties, fast-food NNN lease investments, single-tenant net lease real estate, and reliable 1031 exchange options.

Investment Highlights

• Absolute NNN ground lease with no landlord responsibilities
• Long-term lease with scheduled rent increases
• Standalone drive-thru design ideal for high-frequency consumer visits
• Operated by a proven multi-unit franchisee with a strong local footprint
• High-visibility corner in a dense commercial corridor

Tenant Overview
Dutch Bros Coffee has become one of the most recognizable drive-thru coffee brands in the United States, with rapid national growth and strong customer loyalty. The tenant operating this location is a seasoned franchisee with a portfolio of successful units across the region. While the lease is franchisee-guaranteed, the operator’s commitment to the site and operational history support the long-term stability of the investment. The location serves a large consumer base with repeat business driven by convenience, speed, and brand appeal.

Lease Summary

• Lease Type: Absolute NNN Ground Lease
• Initial Term: Long duration with multiple renewal options
• Escalations: Fixed increases every five years
• Renewal Options: Several multi-year extensions available
• Landlord Responsibility: None

This lease structure provides long-term passive income with built-in rent growth, eliminating capital expenditure and management burdens.

Site Overview
The property sits on a well-positioned parcel along a primary commercial corridor in Phoenix. The building, constructed to Dutch Bros’ latest specifications, features a modern design optimized for speed and efficiency. The layout includes a dual-lane drive-thru, prominent signage, and sufficient customer parking. Its location at a signalized intersection ensures consistent visibility and convenient access for inbound traffic from residential, commercial, and institutional anchors nearby.

Market Overview – Phoenix MSA
Phoenix continues to rank among the fastest-growing metro areas in the country, supported by strong employment growth, business relocation trends, and in-migration. The area boasts a diverse economic base across healthcare, education, logistics, and technology. Infill locations within the metro benefit from stable housing demand, a steady influx of new residents, and vibrant commercial corridors. This particular submarket within the Phoenix MSA benefits from high consumer density and a mix of daytime drivers including office workers, students, and medical professionals.

Demographics and Trade Area
The surrounding area includes a balanced blend of families, professionals, and students. A growing residential base supports daily retail activity, while the presence of schools, healthcare facilities, and employment centers contributes to strong daytime population levels. Local traffic patterns are conducive to high drive-thru volumes, particularly in morning and afternoon peak periods. The property’s proximity to key arterials enhances connectivity and sustained customer flow.

Consumer Demand Drivers

• Consistent traffic volumes on adjacent thoroughfares
• Strong drive-thru demand from busy commuters and professionals
• Location synergy with nearby national retailers and service tenants
• Repeat visits supported by loyalty programs and high brand visibility
• Walkability from adjacent commercial and educational uses

Income Profile and Upside
This offering provides predictable income growth through fixed rent escalations without the uncertainty of operating expenses or tenant maintenance issues. The tenant is responsible for all costs related to the property, including upkeep of the structure and grounds. The ground lease structure enhances investor confidence by minimizing liabilities and streamlining portfolio management. The strength of the tenant and location also support long-term appreciation potential and exit optionality.

Ideal Buyer Profile
This asset is well-suited for a variety of investor profiles, including:

• 1031 exchange buyers seeking passive income replacement
• Investors targeting single-tenant retail properties with low-risk leases
• Private buyers building long-term wealth through stable NNN holdings
• Institutional and fund-level capital deploying into essential service retail
• Real estate investors focused on growth markets in the Southwest

Market Positioning and Trends
Drive-thru coffee assets remain among the most sought-after categories in net lease real estate, offering a proven model that combines speed, brand loyalty, and daily demand. Dutch Bros is recognized for its innovative branding and customer engagement strategy, attracting both younger demographics and repeat visitors. Properties like this in growing metros such as Phoenix consistently perform well, both in terms of in-place income and resale demand. This offering fits well within keyword-driven investor searches such as net lease investment properties, NNN properties for sale, single-tenant NNN retail, fast-casual NNN lease investments, and 1031 exchange NNN opportunities.

Conclusion
This Dutch Bros Coffee in the Phoenix MSA presents a rare opportunity to acquire a passive income-producing property with a long-term absolute NNN ground lease in place. With zero landlord obligations, consistent rent escalations, and a high-visibility location in one of the strongest growth markets in the country, this asset is well-positioned for investors seeking durable income and long-term value retention in the net lease sector.

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