Net lease buyers treat McDonald's as the benchmark tenant. The company has over 40,000 locations worldwide, many leases carry a corporate guarantee, and the landlord has very little to do beyond collecting rent.
Understanding the McDonald's Lease Structure
Most McDonald's locations operate under absolute NNN leases with 20-year initial terms and multiple 5-year renewal options. The ground leases draw the most interest because they often carry rent escalations tied to sales performance or CPI.
Investment Considerations
- Corporate vs. franchisee guarantee implications
- Drive-thru locations command premium pricing
- Ground lease vs. fee simple ownership structures
- Cap rate compression in prime locations

