7-Eleven History
7-Eleven traces its roots back to 1927 when Joe C. Thompson Jr. and J. Frank “Uncle Johnny” Brown opened an icehouse in Dallas, Texas. Initially known as “Tote’m,” the store’s name changed to 7-Eleven in 1946 to reflect its extended operating hours from 7 a.m. to 11 p.m. The concept of convenience stores gained popularity, leading to rapid expansion across the United States in the 1950s and 1960s. Innovative products like self-serve fountain drinks, Slurpee, and Big Gulp became synonymous with the brand. In 1969, 7-Eleven adopted the franchise model, propelling its global presence. The company expanded internationally, including markets like Canada, Japan, Australia, China, and Russia. In 2005, the Japanese subsidiary, Seven & I Holdings Co., Ltd., acquired the entire 7-Eleven chain worldwide, creating a truly global organization. 7-Eleven continues to adapt to changing consumer preferences, introducing new initiatives such as mobile payment options, delivery services, and healthier product offerings.
Why Invest in Ground Lease and NNN Lease of 7-Eleven?
Investing in 7-Eleven’s ground lease and triple net (NNN) lease properties offer compelling reasons:
1) 7- Eleven NNN Property Investment: Stable income
With a well-established brand and strong market presence, 7-Eleven provides reliable income streams. Ground and NNN leases offer predictable cash flows over the long term.
2) 7-Eleven NNN Property Investment: Established tenant
7-Eleven’s success and recognizable brand reduce the risk of vacancy or lease default, ensuring a stable tenant for the property.
3) 7-Eleven NNN Property Investment: Low management responsibility
In-ground and NNN leases, the tenant manages property maintenance and expenses, minimizing the landlord’s management obligations.
4) 7-Eleven NNN Property Investment: Favorable lease terms
Long lease terms with built-in rent escalations provide predictable income and potential rental growth.
5) 7-Eleven NNN Property Investment: Real estate value
7-Eleven’s strategic locations in high-traffic areas can increase property value, offering potential capital appreciation.
Pros and Cons of 7-Eleven Ground Lease and NNN Lease Investment
Pros:
1. Stable income from a well-established brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.
Cons:
1. Lease renewal risk when the term expires.
2. Dependency on 7-Eleven’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.
Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.
