Fast Food Commercial Real Estate NNN

1 Reply

Hello all,

I am interested in purchasing a NNN commercial property maybe something like a fast food restaurant Fortune 500 tenant $1-2mill.

I do not see posts about this at all and need help in researching and educating myself.

I know they are generally very low cap rates (I'm seeing 5-6% right now on loopnet).

I have heard from podcasts that loopnet is the "trash bin" of real estate and it's better to get a connection with a broker who deals with these types of properties.

My question is:

How can I, as an investor, learn and educate myself on what exactly is a good purchase price for a property taking into account the asking price and cap rate?

1.  Are there any recommended books about this?  e.g. how to determine price of big Fortune 500 tenant commercial real estate.

2.  Are there any recommended books info on buying a corner property and getting a big tenant to lease?

@Yusuf K. For starters look Google CBRE 2018 1H US cap rates.. there should be a category for retail.. the bigger the brand the closer it deserves to be to that market cap rate.. Not done yet.. you need to figure out the strength of the lease.. absolute/true NNN is the best.. years till expiry, how new the building and yearly increases impact how close to the market cap rate the building should be.. Good luck bud