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  Taco Bell


Average Property & Lease

Average Sale Price$1,877,726
CAP Rate (12mo avg with 10+ lease term)4.57%
NOI$88,360
$/Square Foot$600 - $1,200
Building Size1,800 - 2,200 sf
Lot Size.5 - 1.2 acres
Lease Term20 Years
EscalationsVaries
CREDIT RATING
BB
S&P
Ba3
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: November 28, 2016
Net Lease Advisor Overview

Taco Bell typically features a 1,800 - 2,200 +/- SF building with a drive-thru window, situated on .5 - 1.2 acre of land. It is important to note that Taco Bell franchises the majority of its locations. There are a number of various lease agreements and guarantors operating under the Taco Bell banner. As a result, lease terms vary as do cap rates based on the size and strength of the operator and sales at a particular location. Generally the lease term is 20 years with 4 five-year options with increases of 10% every 5 years.
 

Pros

Cons

  • Higher cap rates available
  • Engaged in heavy advertising to improve brand image and market penetration
  • Often new favorable NNN leases with good increases
  • Non-investment grade credit
  • Must look closely at performance of franchisor across all locations
  • Not all leases require sales reporting
Tenant Description

Glen Bell opens his first Taco Bell restaurant in Downey, CA, serving what his customers called "Tay-Kohs." Glen sold 868 Taco Bell restaurants to PepsiCo Inc., who then announced the spin-off of its quick service restaurants - KFC, Taco Bell, and Pizza Hut now known as Yum! Brands, Inc.

Taco Bell serves made-to-order and customizable tacos and burritos, among other choices, and is the first QSR restaurant to offer American Vegetarian Association (AVA)-certified menu items. Taco Bell and its more than 350 franchise organizations proudly serve over 42 million customers each week through nearly 7,000 restaurants across the nation, as well as through its mobile, desktop and delivery ordering services.

As the leading Mexican-inspired quick service restaurant brand, Taco Bell plans to have 8,000 restaurants by the year 2023 which they anticipate will add an estimated 100,000 jobs nationwide.

Yum! is ranked number 201 on the Fortune 500 list, with revenues exceeding $13 billion in 2012. Yum! Brands were honored by USGBC by being included in their recent publication "LEED in Motion: Retail."


TACO BELL TREND
CAP Rate

2015 avg: 5.83%

2016 avg: 5.17%

RECENT SALES

Cleveland, TN | 4.92%

Coral Springs, FL | 4.25%

MORE INFO
www.tacobell.com
Google Finance: YUM
Google News: YUM