7-Eleven Tenant Overview


7-eleven, 7eleven, 711, 7-11, net lease, c store

Pros

  • Strong credit and brand recognition
  • If fee simple ownership - accelerated depreciation is available
  • Corporate guarantee
  • Corner locations
  • Essential retail

Cons

  • Environmental concerns with filling station locations
  • Ground leases do not allow for depreciation
  • Privately owned

Tenant Description

The world's largest operator, franchisor, and licensor of convenience stores.

7-Eleven is well-established in the net lease investment sales market. Most 7-Eleven stores, often times are corner locations, which have high visibility and excellent access. Additionally, many 7-Eleven locations have filling stations.

From a net lease investment point of view, it is important to recognize the differences between walk-up, gas, and non-gas 7-Eleven locations. For all location types, 7-Eleven units typically sit on sites witnessing 25,000 passing vehicles daily. This and other real estate requirements for 7-Eleven sites significantly enhance the underlying value of these net lease properties. In regards to the typical gas station site, 7-Eleven prefers ground leases at corner locations or Shopping Center outparcel sites with 0.8 - 1.0 acre of land in high traffic areas. These leases are generally 15-20 years in length and have rent bumps of 10%-15% every five (5) years. 7-Eleven is currently in expansion mode of their non-gas C-store concept, with sites fitting into small retail strip centers, retail condo space as well as single tenant locations. This concept allows the retailer to fit on smaller parcels with 1,000 - 2,500 square foot buildings, which could allow investors an opportunity to get smaller spaces in high barrier to entry markets.

7-Eleven was founded in 1927 and has now grown and evolved into an international chain of convenience stores, operating nearly 13,000 company-owned and franchised stores in North America. 7-Eleven is wholly-owned by Seven and I Holdings Co., Ltd.

Average Cap Rate
5.01%
Trailing 12-month average
Average Property & Lease
Average Sale Price $5,013,418
NOI $290,721
$/Square Foot $1,432 - $2,005
Building SF 2,500 - 3,500
Lot Size Varies (Gas/Non-Gas)
Lease Term 15 - 20 Years
Escalations 10% Every 5 Years
Stock Symbol N/A
Credit Rating
S&P A
Moody's Baa2
Average Cap Rate Trend
4.40%
2022
5.01%
2023
Rates reflect year-over-year comparison
Recent Sales Comps
Bayville, NJ 4.55%
Huston, TX 5.00%
Mansfield, MA 6.00%