Starbucks

Starbucks – Single Tenant Net Lease Investment
San Antonio–New Braunfels MSA, TX | Freestanding Drive‑Thru Coffee Shop | Absolute NNN Lease | Passive Income Opportunity

This investment offering features a freestanding Starbucks located in the San Antonio–New Braunfels metropolitan area. The property is under a long-term absolute triple-net (NNN) lease, with scheduled rent escalations every five years and zero landlord responsibilities. All operating and capital expenses are assumed by the tenant, delivering fully passive income. This asset is a strong match for investors seeking net lease investment properties, NNN properties for sale, single tenant net lease assets, and coffee-shop NNN lease investments in a vibrant Texas growth market.

Located along a high-traffic arterial corridor in a booming suburban node of San Antonio, the site offers dual-lane drive-thru access, excellent visibility, and convenient ingress and egress. It is surrounded by residential neighborhoods, medical centers, office parks, schools, hospitality venues, and regional retail anchors. This positioning aligns well with investor keywords including buy NNN property, long-term NNN lease investments, 1031 exchange NNN strategies, and fast casual NNN lease investments.

Investment Highlights

• Occupied by Starbucks, a widely recognized national brand with strong credit
• Absolute NNN lease structure ensures tenant covers all taxes, insurance, maintenance, and capital costs
• Scheduled rent increases every five years for income and hedge against inflation
• Long-term remaining lease term with multiple five-year renewal options
• Freestanding building prototype with dual-lane drive-thru optimized for high-volume performance
• Positioned on a major corridor in a growing San Antonio suburb
• Supported by surrounding residential development, healthcare hubs, schools, and retail traffic
• Ideal for investors pursuing passive-income portfolios, 1031 exchange replacements, and net lease real estate investments

Tenant Overview

Starbucks is a leading global coffee brand, known for consistent unit performance, strong customer loyalty, and operational efficiency. Its drive-thru model attracts regular frequency, with mobile and loyalty platforms bolstering sales. The franchise operator at this location is regionally experienced and has demonstrated strong historical performance metrics.

The lease is absolute NNN, meaning the tenant assumes all financial obligations related to the property—taxes, insurance, roof, HVAC, landscaping, structural repairs, parking lot maintenance, and site utilities. Scheduled rent escalations every five years are typically CPI-indexed or fixed, ensuring reliable income escalation over time. This structure provides investors with predictable, passive income and minimal management oversight.

Lease Summary

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

This lease profile aligns with investor preferences for net lease investment properties featuring passive income and credit-backed tenants.

Market Overview – San Antonio MSA

San Antonio is the seventh-largest metropolitan area in the United States, with a population exceeding 2.5 million and consistent growth driven by diversified economic sectors. The metro benefits from strong military presence (including Joint Base San Antonio), healthcare systems, financial services, tourism, logistics, technology, higher education, and manufacturing. The city boasts a business-friendly environment and a low cost of living, drawing continued in-migration from higher-cost regions.

Suburban growth is especially strong in the northern, eastern, and western corridors of San Antonio, marked by new schools, shopping centers, medical facilities, and family-oriented subdivisions. Demand for quick-service food and beverage has risen accordingly, with drive-thru coffee venues proving popular among commuters, professionals, students, and families.

Site Features

• Modern Starbucks prototype building with dual-lane drive-thru
• Monument and building signage visible from a major arterial road
• Ample parking and stacking capacity for peak demand
• Easily accessible from both directions at a signalized intersection
• Located near major grocers, pharmacies, medical offices, banks, schools, and hospitality properties
• Positioned to capture a wide customer base: commuters, residents, students, and visitors

The site layout and positioning support strong unit performance across morning, midday, and afternoon peaks, aligning with Starbucks’ operational model.

Trade Area Demographics

Within a five-mile radius:

• Population exceeds 100,000 residents, with ongoing annual growth
• Median household incomes are above state average, supported by military, healthcare, education, and tech employment
• Well-educated workforce including professionals, students, and hospital staff
• High daytime population generated by employment centers, schools, and regional medical facilities
• Continued residential development via single-family and multifamily projects

These demographics support frequent customer visits, contributing to consistent sales performance and transaction volume.

Consumer Drivers and Demand Trends

Key factors supporting performance include:

• Rapid suburban expansion creating new rooftops and growing consumer demand
• Local employment hubs generating commuter traffic during morning and mid-day hours
• Strong drive-thru preference among busy households and mobile consumers
• Institutional and recreational activity generating additional midday and weekend traffic
• Limited competition for high-quality coffee along key corridors supporting tenant performance

Rent Escalations and Cash Flow Profile

Scheduled rent increases every five years enhance net operating income and provide inflation protection. Under the absolute NNN model, the landlord benefits from clean, passive cash flow with no exposure to capital costs. This financial model fits well with long-term investment strategies, including passive income portfolios, 1031 exchange executions, or institutional underwriting.

Ideal Buyer Profile

This asset is well-suited for:

• Private investors or family offices seeking long-term passive income
• Capital allocators aiming to build portfolios of credit-tenant net lease assets
• Buyers completing 1031 exchange NNN transactions
• REITs and institutional buyers targeting national-brand QSR and coffee assets
• Portfolios focused on durable, income-producing real estate with minimal management

The combination of tenant strength, location fundamentals, lease clarity, and growing metro dynamics makes this Starbucks a high-quality acquisition.

Texas Net Lease Investment Trends

Texas remains a leader in population growth and corporate relocation, consistently increasing commercial real estate demand. San Antonio’s strong military, healthcare, logistics, and education sectors have supported consistent growth in demand for convenience-focused assets. Freestanding Starbucks units in drive-thru format remain highly coveted due to high visibility, quarter-day part traffic, and national franchise strength.

Investor interest continues to rise for single tenant NNN assets in growing secondary markets—especially suburbs with low vacancy, building expansion, and supportive demographics. Assets under national-brand lease structures in high-traffic corridors are commanding pricing and exhibit resilience.

Conclusion

This freestanding Starbucks in the San Antonio MSA offers a compelling net lease investment. With a national tenant, absolute NNN lease structure, scheduled rent escalations, optimized drive-thru configuration, and strategic placement in a growing suburban corridor, the asset supports long-term passive income with minimal oversight.

Suitable for buyers focused on net lease real estate investments, single tenant NNN retail properties, or 1031 exchange acquisitions, this Starbucks delivers on expectations for yield, tenant quality, market growth, and structural simplicity. It represents a strong addition to any portfolio seeking high-performing net lease assets in thriving Texas metros.