Fast Food and Pharmacies:

People joke that Starbucks stores are multiplying. They’re not wrong. As of June 2025, there are 17,164 Starbucks stores in the US, up from 15,988 stores in June 2024.

Starbucks are multiplying – and they’re not alone. Standalone coffeehouses, pharmacies, dollar stores, and fast-food (or “quick-serve”) restaurants are practically mandatory in most parts of the country, and these properties bring great advantages to investors.

What Are Triple Net Lease (NNN) Properties?

The triple net lease market includes a diverse group of property types:

• Quick-service restaurants (QSR)
• Dollar stores
• Convenience stores
• Auto parts stores
• Retail pharmacies
• Coffeehouses
• Single-tenant office buildings

Why Are Investors Drawn to NNN Properties?

Properties with a triple net lease – also called NNN properties — have long been considered attractive investments. Why?

• Generally occupied by high “credit” tenants, these properties attract large strong companies unlikely to default. These are names you know – CVS, McDonald’s, Dunkin’ – and companies you feel confident about
• These quality tenants favor lengthy lease terms, often with options to extend, making NNN properties an excellent source of long-term stable income
• Since the tenant is generally responsible for day-to-day maintenance, insurance, and operating expenses, these properties are an easy lift for investors who don’t want to be too hands-on.

NNN properties have much to offer the thoughtful investor and are only growing in popularity. The traditional mall seems to be on its last legs, increasingly eschewed in favor of standalone retail and refreshment destinations.

NNN Properties and Cost Segregation

These properties make excellent candidates for tax strategies like cost segregation.

NNN Properties are asset-rich, with QSRs boasting a full array of specialty kitchen equipment, along with drive throughs, electric signage, and speakers with dedicated wiring.  

Many assets in retail stores can be accelerated as well – removable fixtures, decorative lighting, window treatments, counters and cabinetry, etc.  

Since NNN properties are generally free-standing, taxpayers may also benefit from an abundance of land improvements. Outdoor lighting, landscaping, and parking lots are found in most establishments.  

Cost Segregation Success: Quick-Service Restaurant Example

Let’s consider a newly constructed QSR which included:

• Freestanding restaurant
• Main dining room
• Point-of-sales desk
• Full-service commercial kitchen
• Drive-through system

Despite being a “basic” fast-food establishment, this QSR contained an abundance of assets eligible for acceleration:

• Property constructed and placed-in-service in 2021
• Depreciable basis: $2.10M
• Engineers Moved:
  • 28% of assets to 5-Year
  • 29.9% of assets to 15-Year
• First Year Tax Savings: $358,183

NNN lease properties are an excellent investment, and cost segregation opportunities make them even more attractive. If we can help you make the most of your property, just let us know.