Whataburger Tenant Overview


  • Ground leases
  • Nationally recognized tenant
  • Increases in primary term


  • Low cap rates
  • Non-investment grade credit

Tenant Description

Whataburger is a prominent fast-food chain that has gained a strong foothold in the competitive restaurant industry. With its signature orange and white striped logo, Whataburger has become a beloved brand across the United States. This tenant description focuses on Whataburger's background and its significance in the net lease commercial real estate space.

Whataburger was founded in Corpus Christi, Texas, in 1950 by Harmon Dobson and Paul Burton. The company started as a small roadside burger stand but quickly gained popularity for its flavorful burgers and commitment to quality. Over the years, Whataburger expanded its menu to include a wide variety of options, including chicken sandwiches, breakfast items, salads, and milkshakes. With its emphasis on made-to-order meals and fresh ingredients, Whataburger has cultivated a loyal customer base.

Whataburger currently operates over 900 locations and has an estimated revenue of 3 billion. They are an attractive tenant in the net lease commercial real estate space due to its strong brand recognition, consistent customer demand, and stable financial performance. Net lease properties typically involve long-term leases, where the tenant assumes responsibility for various expenses, including property taxes, insurance, and maintenance costs. This structure often appeals to investors seeking stable and predictable income streams.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,912,409
NOI $119,869
$/Square Foot $728 - $970
Building SF 3,000 - 4,000
Lot Size 1.00 - 2.00 acres
Lease Term 15-20 years
Escalations Varies
Stock Symbol N/A
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Pensacola, FL 6.29%
Tyler, TX 4.50%
Mesa, AZ 3.80%