This page compares Starbucks NNN asking cap rates with the yield on BBB-rated corporate bonds. Starbucks Corporation is rated BBB+/Baa1 (S&P / Moody’s ratings on its senior unsecured debt), and those ratings stand behind a lease only when Starbucks Corporation is the tenant or guarantor named in it, which must be confirmed property by property. Across the active Starbucks listings we track, the live median asking cap rate is 5.75%, while the ICE BofA BBB US Corporate Index effective yield was 6.19% on October 1, 2026 (FRED), a spread of −44 bps. The comparison depends on structure: rent growth, 1031 exchange eligibility, land value and, when the buyer owns the building, depreciation.
This page compares the two instruments side by side. For the full methodology and multi-company comparison, see the bond-to-NNN spread analysis. For Starbucks credit and store detail, see the Starbucks credit rating and cap rate page and the tenant ratings database.
Starbucks Credit Profile
| Metric | Details |
|---|---|
| S&P Rating | BBB+ |
| Moody’s Rating | Baa1 |
| Rating Type and Check | Ratings on senior unsecured debt (May 6, 2025 pricing term sheet); Ratings checked October 8, 2026 |
| Investment Grade Status | Investment Grade |
| Ticker | NASDAQ: SBUX |
| US Store Count | 10,047 company-operated (Sept. 28, 2025); about 18,300 in North America including licensed stores |
| Annual Revenue | $37.2 billion (fiscal 2025) |
| Lease Structure | Property-specific: confirm in the executed lease which entity is the tenant and whether Starbucks Corporation guarantees it; 40 of 64 listings that state an original term show 10 years (Oct. 8, 2026) |
The Spread: Starbucks Bonds vs NNN
| Metric | BBB-Rated Corporate Bonds (Index) | Starbucks NNN Property |
|---|---|---|
| Yield / Cap Rate | 6.19% (ICE BofA BBB US Corporate Index effective yield, October 1, 2026) | 5.75% median asking cap rate (live) |
| Nominal Spread vs Bond Index | Baseline | −44 bps at the median (live) |
| Minimum Investment | $2,000 minimum face amount (denomination), then $1,000 increments, on the Starbucks senior notes sold in May 2025 (prospectus supplement); the price paid for a bond can be above or below its face amount | The asking price of a whole property; current Starbucks asking prices are on our Starbucks NNN for-sale page |
| Liquidity | Tradable on business days through a broker; individual issues can trade thinly | Weeks to months to market and close; varies by property |
| Income Taxation | Ordinary income (federal rates up to 37%, plus state tax and the 3.8% net investment income tax where it applies) | Taxable with no depreciation deduction on a land-only ground lease; partly sheltered by building depreciation when the buyer owns the building |
| 1031 Exchange Eligible | No (IRC 1031(a)(1) covers real property only) | Yes, if held for business or investment use and exchanged for like-kind real property (IRC 1031(a)(1)) |
| Depreciation Deduction | None | None on land-only ground leases (land is not depreciable, Treas. Reg. 1.167(a)-2); 39 year straight line on an owned building (IRC 168(b)(3), 168(c)), and a cost segregation study may move some components to shorter lives |
| Appreciation Potential | Returns par at maturity absent default; market price moves before then | Real estate value can rise or fall |
| Rent / Coupon Growth | Fixed coupon (no inflation protection) | Scheduled increases; 10% every 5 years appears in more of our Starbucks listings than any other schedule |
| Leverage Available | Varies by investor and broker | Financing may be available; terms depend on the lease, borrower and lender |
The bond column uses the ICE BofA BBB US Corporate Index effective yield (FRED series BAMLC0A4CBBBEY) as a dated, broad benchmark for Starbucks’ S&P rating category; it is not a quote on a specific Starbucks bond, and individual Starbucks bonds may yield more or less than the index. NNN figures are live asking cap rates from the 114 active Starbucks listings InvestmentGrade.com tracks that have a cap rate in our data; a few of those cap rates are calculated from a listing’s stated price and income rather than stated in the listing. Asking cap rates are not closing cap rates. This is not investment advice.
Hypothetical After Tax Comparison: $1,000,000 in a BBB Benchmark Bond vs Starbucks NNN
Whether taxes change this comparison depends on what the buyer owns. The table below is a hypothetical full-year illustration, not a forecast or a quote on any investment. It assumes a high bracket investor (37 percent federal, 5 percent state, 3.8 percent net investment income tax, 45.8 percent combined, applied to every dollar of taxable income), a bond bought at face value that pays an assumed 6.19 percent annual cash coupon (equal to the ICE BofA BBB US Corporate Index effective yield on October 1, 2026; an index yield is not itself a coupon), and an assumed 5.75 percent cap rate on both NNN columns (compare the live median above).
| Metric | Hypothetical Bond (6.19% Coupon) | Starbucks NNN Ground Lease (Land Only) | Starbucks NNN Fee Simple (Building Owned) |
|---|---|---|---|
| Investment | $1,000,000 | $1,000,000 | $1,000,000 |
| Annual Income / NOI | $61,900 | $57,500 | $57,500 |
| Annual Depreciation | $0 | $0 (land is not depreciable) | $20,513 (80% building, 39 year straight line) |
| Taxable Income | $61,900 | $57,500 | $36,987 |
| Tax at 45.8% Combined | ($28,350) | ($26,335) | ($16,940) |
| After Tax Income | $33,550 | $31,165 | $40,560 |
| After Tax Yield | 3.36% | 3.12% | 4.06% |
Assumes a 45.8 percent combined rate (37 percent federal, 3.8 percent net investment income tax, 5 percent state), unlevered, a full year of ownership after the year of purchase, and an assumed 5.75 percent cap rate for both NNN columns; a ground lease priced at a lower cap rate would lower the ground lease column. A land-only ground lease has nothing to depreciate (Treas. Reg. 1.167(a)-2), so the rent is taxed much like a bond coupon. The fee simple column assumes a $1,000,000 purchase price with 80 percent ($800,000) allocated to the building as depreciable basis, depreciated straight line over 39 years (IRC 168(b)(3), 168(c)); the first and last years are prorated under the mid-month convention (IRC 168(d)(2)). The deduction offsets this property’s own rental income, which stays positive in the example; in other situations the passive activity rules (IRC 469) can limit or defer it. A cost segregation study can identify building components with shorter recovery periods, and qualifying property acquired and placed in service after January 19, 2025 may be eligible for 100 percent bonus depreciation (IRC 168(k), as amended by Public Law 119-21; IRS Notice 2026-11), sheltering more income in the first year, subject to the same limits on using the deduction. That benefit is front-loaded: on a taxable sale, part of any gain can be taxed as depreciation recapture (IRC 1245, 1250), depending on the gain realized. A 1031 exchange can defer gain on real property, but each component must be checked, since items that are not real property do not qualify, and recapture can still apply (IRC 1031(a)(1), 1245(b)(4), 1250(d)(4)). This is general information, not tax advice; consult a tax professional.
Related: Gas Station Bonus Depreciation
Factors That May Shape Starbucks NNN Pricing
In the listings we track, the live median asking cap rate is 5.75% for Starbucks and 4.00% for McDonald’s. The structures differ too. Among listings that state an original lease term, 40 of 64 Starbucks listings show 10 years, while 14 of 21 McDonald’s listings show 20 years. Only 5 of 123 Starbucks listings are marked as ground leases (82 are not and 36 do not say), versus 43 of 44 McDonald’s listings (1 is not); these counts are as of October 8, 2026, in the listings InvestmentGrade.com tracks. Starbucks has also been closing coffeehouses that do not meet its performance expectations. These differences may account for part of the cap rate gap; the listing data do not isolate any one cause. Check, property by property, whether the site has a working drive-through and whether another quick service user could adapt the building.
- Real estate quality. Starbucks says its company-operated stores are typically located in high-traffic, high-visibility locations (Form 10-K), though site quality varies and should be checked property by property.
- Contracted rent from a rated company. When the executed lease names Starbucks Corporation as tenant or guarantor, the rent obligation is backed by an investment grade rated company for the remaining lease term; Starbucks listings that state an original term often show 10 years, with renewal options at the tenant’s election.
- Buyer pool. Starbucks NNN can draw private investors, family offices and 1031 exchange buyers, though buyer depth varies with lease term and location.
- After tax math depends on structure. On a land-only ground lease the rent is taxed much like a bond coupon, so any edge over a bond comes from 1031 exchange deferral (IRC 1031(a)(1)), rent growth and land value. Inherited property generally takes a basis equal to its fair market value at the date of death (IRC 1014(a)), subject to exceptions; that applies to inherited bonds as well as real estate, so it is not by itself an advantage of the property. Building depreciation adds a shield only when the buyer owns the improvements.
- 1031 exchange eligibility. A Starbucks property held for investment can be exchanged for other like-kind real property, deferring gain as long as the exchange rules are met (IRC 1031(a)(1)); depreciation recapture can still apply in some exchanges (IRC 1245(b)(4), 1250(d)(4)).
Key Underwriting Considerations for Starbucks NNN
- Lease term remaining. Short remaining terms carry renewal risk; look for 10 or more years where possible.
- Ground lease vs fee simple. Only 5 of the 123 Starbucks listings we track are marked as ground leases (as of October 8, 2026), too few to compare their cap rates with fee simple listings reliably. A buyer who owns only the land has no building to depreciate (land is not depreciable, Treas. Reg. 1.167(a)-2); a buyer who owns the building can depreciate it.
- Rent escalation structure. Verify the schedule. Among the listings we track that disclose a schedule, 10% every five years is the most common; some carry smaller steps.
- Store closures. Starbucks closed 620 US company-operated stores in fiscal 2025 while opening 509, and on September 22, 2026 approved closing about 250 more North American stores, with about $200 million of cash charges mostly for lease exits and severance. Closing a store does not by itself end the tenant’s rent obligation; what happens depends on the lease terms, such as any early termination or go-dark rights, and on applicable law, and a landlord may face a negotiated exit or re-leasing. Check store performance and the site’s value to another user.
- Tenant entity. Confirm in the executed lease which entity is the tenant and whether Starbucks Corporation is the tenant or guarantor (licensed stores are operated by the licensee), and review current rating actions before closing.
Frequently Asked Questions
Starbucks Corporation is rated BBB+ by S&P and Baa1 by Moody’s, ratings on its senior unsecured debt. Ratings checked October 8, 2026.
Across the active listings we track, the live median Starbucks asking cap rate is 5.75%, across 114 listings with a cap rate in our data. Lease term remaining, ground lease versus fee simple, location, and rent in place can affect where a property falls. Asking cap rates are not closing cap rates.
At the live median, Starbucks NNN asks 5.75% against an ICE BofA BBB US Corporate Index effective yield of 6.19% on October 1, 2026 (FRED), a spread of −44 bps. The real estate offers what a bond does not: scheduled rent increases, land ownership, 1031 exchange eligibility, and depreciation when the buyer owns the building. In the hypothetical after tax example on this page, a land-only ground lease trails the assumed bond coupon, while a fee simple property with building depreciation comes out ahead; results depend on the buyer’s tax situation and the property.
Asking prices vary with market, traffic, remaining lease term and rent in place. Current asking prices for the Starbucks listings we track are on our Starbucks NNN for-sale page. Asking prices are not closing prices.
This page uses the ICE BofA BBB US Corporate Index as a broad benchmark for bonds in Starbucks’ rating category, not a quote on a specific Starbucks bond; at the live median, Starbucks NNN asking cap rates sit −44 bps from that index. On after tax income, structure decides: a land-only ground lease has nothing to depreciate, so its rent is taxed much like a bond coupon; when the buyer owns the building, depreciation shelters part of the rent, and in the hypothetical example on this page the NNN after tax yield moves ahead of the bond.
Benchmark Starbucks NNN by Drive-Thru Format, Lease Term, and 1031 Buyer Depth
Before treating a Starbucks NNN lease as a bond substitute, compare the asking cap rate against the current 2026 NNN cap rates by tenant credit quality and the 1031 tenant-selection framework. Starbucks sits in the BBB+/Baa1 tier, so the real question is whether the lease term, drive-thru format, rent bumps, and 1031 buyer depth justify trophy pricing.
For adjacent tenant benchmarks, compare McDonald’s bonds vs NNN, Home Depot bonds vs NNN, and the broader Investment Grade Tenants database.
1031 Buyer Shortcut: Starbucks Drive-Thru Pricing Discipline
Investment grade credit does not automatically justify trophy pricing for a Starbucks drive-thru if the lease is short, rent is above market, or the site lacks residual reuse. Benchmark any Starbucks identification against the 1031 tenant-selection framework, the current 2026 NNN cap-rate framework, and adjacent QSR benchmarks such as McDonald’s and Chick-fil-A.
Considering Starbucks NNN?
We source Starbucks NNN properties nationally across lease terms and price points. On the majority of transactions, there is no separate fee to you as the buyer.
Find It: On market and off market Starbucks NNN sourced and underwritten for your criteria.
Fund It: Investment Grade Capital, a service of Investment Grade LLC, matches buyers with lenders. When Starbucks Corporation is the tenant or guarantor named in the lease, lenders may consider its BBB+/Baa1 ratings; financing terms depend on the lease, the borrower and the lender.
Exit It: Starbucks NNN can draw private and 1031 exchange buyers, though demand varies with lease term and location.
Exchange It: 1031 exchange into or out of Starbucks NNN with deadline driven execution.
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