Underwriting fuel and convenience net-lease deals with an investor's discipline — not a listing pitch. In Texas the demand story is real; the risk still lives in tenant credit and the environmental file. We read both before you wire.
A gas station is one of the few net-lease assets where the building is almost beside the point. You are underwriting fuel volume, a corporate credit, and a tank in the ground.
Texas adds population faster than almost any state, has no state income tax, and moves enormous traffic along I-35, I-10 and I-45. That demand makes it one of the deepest fuel and convenience markets in the country — and it brings a lot of paper to market, not all of which should be bought. The discipline that protects you is the institutional one: separate the real income from the pro-forma, the corporate guaranty from the franchisee, and the clean site from the one with a remediation history.
Two Texas stations at the same cap rate can be worth very different prices. The variables that move the number are the strength of the lease guaranty, the remaining term and rent escalations, the brand and store volume, the road position, and — decisively — the environmental condition of the site.
Own the land, not a ground lease. In a high-growth Texas corridor the corner is the irreplaceable part of the deal.
A corporate-backed lease prices tighter than a single-franchisee guaranty. Read who actually signs the rent.
Ten-plus years remaining with built-in rent bumps protects against inflation and re-leasing risk.
Phase I/II and underground storage tank compliance under TCEQ rules. On fuel, this is the deal-killer to clear first.
Gallons pumped and inside sales tell you whether the rent is covered and the location is durable.
Counts, access and rooftops decide whether the tenant renews — and at what rent.
Fuel and convenience sit alongside the rest of the single-tenant net-lease universe — quick-service, auto parts, dollar and pharmacy formats. For foreign and family-office capital, the appeal is the same: dollar-denominated, passive income backed by a long corporate lease. The full thesis and tenant criteria are on the NNN advisory page.
Typically high-5% to low-7%, depending on the corporate guaranty, remaining term, fuel brand, store volume and location. A franchisee-only guaranty should price wider than a corporate-backed lease.
Land ownership, the corporate guaranty, remaining term and escalations, fuel and store volume, the Phase I/II and TCEQ tank compliance, and traffic counts. The environmental review is the deciding factor on most fuel deals.
Yes — usually through a U.S. LLC for liability and tax planning. Financing for non-residents is available with a larger down payment.
It can be, when the lease is corporate-guaranteed, the term is long with escalations, the dirt is fee simple and the environmental file is clean.
Send me the OM and the rent roll. I'll tell you what the real cap is, where the risk sits, and whether it's worth pursuing — independent, buyer-side, no obligation.
Email carlos@balartre.com
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Office 1390 Brickell Ave, Suite 104 · Miami, FL 33131
Gas stations are one asset class in a broader single-tenant NNN mandate. See the full thesis, tenant criteria and how I work.
NNN Commercial Advisory →