Starbucks

Starbucks – Single Tenant Net Lease Investment
League City, Houston–The Woodlands–Sugar Land MSA, TX | Freestanding Drive‑Thru Coffee Shop | Absolute NNN Lease | Passive Income Opportunity

This offering features a freestanding Starbucks drive‑thru located in League City, within the Houston–The Woodlands–Sugar Land metropolitan area. The property is secured by a long-term absolute triple-net (NNN) lease with scheduled rent escalations every five years and no landlord responsibilities. As a result, the asset delivers completely passive income and meets criteria commonly used in investor searches—net lease investment properties, NNN properties for sale, single tenant net lease assets, and coffee-shop NNN lease investments in a major Texas growth market.

Positioned on a high-traffic arterial corridor, the site offers dual-lane drive-thru capability, strong visibility, and easy ingress and egress from both directions. Its proximity to new residential subdivisions, corporate office parks, medical campuses, schools, retail centers, and hospitality destinations positions it as a prime acquisition candidate for investors executing buy NNN property strategies, triple net lease for sale searches, or 1031 exchange NNN transactions in Houston.

Investment Highlights

• Occupied by Starbucks, a dominant national coffee brand
• Absolute NNN lease structure places all property-level expenses (taxes, insurance, maintenance, etc.) on the tenant
• Scheduled rent escalations every five years ensure income step-ups
• Long lease term remaining with multiple five-year renewal options
• Freestanding dual-lane drive-thru design ideal for high-throughput performance
• Located on a major thoroughfare in League City—a thriving suburban suburb of Houston
• Well-positioned for investors targeting fast casual NNN lease investments and net lease real estate investments
• Compatible with portfolios seeking passive income and strong tenant credit

This asset aligns with keywords such as fast food NNN lease investments, single tenant NNN retail properties, and long term NNN lease investments, providing a fully passive structure for buyers looking to build or diversify portfolios.

Tenant Overview

Starbucks is one of the most recognizable and financially stable fast-casual coffee chains globally. The brand is known for high per-ticket sales, strong loyalty programs, mobile ordering, and large sales volume through drive-thru operations. The franchisee operating this location is well-capitalized, with multiple stores across the region, and adheres to brand standards with strong performance metrics.

The lease is structured on an absolute triple-net basis, meaning the tenant is responsible for virtually all costs associated with the building and site—from structural repairs to HVAC maintenance, landscaping, parking lot maintenance, taxes, and insurance. The routine five-year rent escalations typically tied to CPI or fixed rate further enhance long-term investment value.

Lease Summary

• Lease Type: Absolute triple-net (NNN)
• Initial Term Remaining: 15 to 20 years
• Scheduled Rent Escalations: Every five years
• Renewal Options: Multiple five-year periods
• Landlord Responsibility: None

This lease profile is particularly attractive to those seeking net lease investment properties with low oversight, predictable income, and long-term hold potential.

Market Overview – League City & Houston MSA

League City is a rapidly growing suburb southeast of Houston, located between Galveston Bay and Houston’s urban core. The city has experienced significant population and household income growth due to its proximity to employment centers along the I-45 corridor, access to the Space Center, and coastal living appeal. Major employment hubs include NASA’s Johnson Space Center, Baybrook Mall, and nearby medical campuses.

The Houston metro is home to over 7 million people with a diverse economy driven by energy, petrochemicals, healthcare, aerospace, manufacturing, and technology. League City benefits from high urban spillover demand, strong infrastructure, recent-code housing development, schools, regional hospitals, big-box centers, and major new industrial and tech parks.

This combination of suburban expansion and economic strength positions the Starbucks location for sustained traffic and long-term sales performance.

Property Features

• Modern Starbucks prototype with dual-lane drive-thru functionality
• Monument and building signage visible from both directions of traffic
• Ample parking with easy ingress and egress
• Located at a signalized intersection with high daily traffic counts
• Neighbors include grocers, pharmacies, hotels, automotive services, schools, medical offices, and retail centers
• Designed to capture both commuter drive-thru traffic and neighborhood foot traffic

This layout supports Starbucks’ operational model across all dayparts—morning, midday, and afternoon—while providing flexibility for hands-on drive-thru operations during peak demand.

Trade‑Area Demographics

Data for the five-mile trade area reflects:

• Population well over 150,000 residents with ongoing annual growth
• Median household incomes above national benchmarks, driven by professionals and dual-income families
• Highly educated workforce employed in sectors such as healthcare, aerospace, petrochemicals, logistics, and retail
• Steady daytime population generated by office campuses, hospital employees, schools, and tech hubs
• Rapid residential development via planned communities and multifamily construction

The combination of strong household income levels and drive-thru demand makes this location attractive for both volume and ticket velocity.

Growth Drivers

Core site fundamentals include:

• Suburban population growth driven by Houston’s outer-ring expansion
• Nearby employment anchors including NASA, major hospital systems, and chemical plants
• New residential subdivisions and multifamily complexes adding rooftops
• Favorable Texas tax structure and development incentives
• Proximity to major highways providing commuters with routine traffic volumes
• Lifestyle-driven demand including coffee consumption by professionals, students, travelers, and residents

Together, these factors support both baseline volume and longer-term growth in demand for convenience retail.

Rent Escalations and Income Security

The five-year escalators compound revenue in line with inflation, enhancing long-term yield. The absolute NNN structure ensures clean net operating income without landlord cost variability. This arrangement aligns with investor preferences for single tenant net lease assets offering operational simplicity and predictable returns.

Potential Exit and Portfolio Fit

Ideal buyers include:

• Private investors or family offices seeking passive income investments
• Themes such as food-service portfolios, coffee-focused holdings, or diversified NNN assets
• 1031 exchange investors seeking replacement properties with national brand tenants
• Institutional buyers or real estate funds focusing on fast-casual NNN lease holdings
• REITs or capital allocators targeting Southeast/U.S. growth markets

The tenant credit, lease structure, and site layout position this Starbucks for strong buyer demand, favorable cap rates, and future resale events.

Texas Net Lease Trends

Texas continues to outperform the nation in both population growth and corporate relocation. Markets like Houston, Dallas, and Austin are seeing sustained demand for drive-thru QSR and bank-anchored retail assets. Suburban nodes such as League City have become excellent targets for passive investors attracting inbound capital seeking stable income with upside.

There remains limited supply of freestanding NNN Starbucks in high-growth suburban and lifestyle corridors, which supports asset scarcity and long-term stability.

Conclusion

This freestanding Starbucks in League City offers an outstanding passive income investment with high tenant quality, absolute NNN lease structure, built-in escalations, and productivity-optimized layout in a growth-oriented Houston suburb. It aligns closely with investor searches for net lease real estate investments, coffee-shop NNN lease investments, single tenant NNN retail properties, and 1031 exchange NNN transactions. With strong underlying demographics, multiple demand drivers, and no landlord obligations, this asset meets strategic acquisition criteria in today’s competitive NNN market.