Tennessee has quietly become one of the strongest and most resilient NNN (triple-net) investment markets in the Southeast. With a growing population, a business-friendly tax environment, and a steady influx of national retailers expanding across both metro and rural areas, the state delivers exactly what passive investors look for: reliable tenants, predictable income, and long-term stability.
Among the hundreds of national brands operating inside Tennessee, Dollar General, Starbucks, and Wendy’s continue to stand out as the top NNN tenants investors target—each for different but equally compelling reasons. Whether an investor is completing a 1031 exchange, building a long-term income portfolio, or seeking stable diversification, these three tenants dominate the Tennessee net-lease landscape.
This blog explores why these brands are so prominent, what makes Tennessee ideal for NNN ownership, and how investors can leverage this market for consistent returns.
Why Tennessee Has Become a Magnet for NNN Investors
One major factor driving NNN growth in Tennessee is the state’s no-income-tax environment, which has attracted companies, workers, and retirees from around the country. More people translates into more retail traffic—and national tenants have responded accordingly.
Tennessee also has strong logistics advantages. With major interstates, distribution hubs, and centralized access to the Southeastern region, companies can operate efficiently and profitably. This combination of population growth and operational convenience creates a perfect environment for NNN tenants who rely heavily on high-traffic locations and efficient supply chains.
Additionally, NNN investors appreciate the broad diversity of property types within Tennessee—from suburban pads to rural convenience locations to dense metropolitan infill sites. This diversity means investors can pursue cap rates and lease terms that match their portfolio preferences.
1. Dollar General – Tennessee’s Most Dominant NNN Tenant
Dollar General is not just a top NNN tenant in Tennessee—it is arguably the strongest rural retail tenant in America, and Tennessee remains its home turf. With its corporate headquarters in Goodlettsville, TN, Dollar General maintains an enormous store presence across the state, making it a frequent target for NNN buyers.
Why Investors Love Dollar General NNN Deals
Recession-resistant model: DG thrives in all economic cycles, including downturns.
Ideal for rural and suburban areas: Many Tennessee towns rely heavily on a Dollar General store as a primary retail option.
Long-term passive income: DG leases commonly include 10–15 year terms with rental increases.
Corporate guarantees: Most stores are backed directly by the parent company.
Dollar General’s strategic market dominance in Tennessee means properties rarely sit vacant, and site performance remains consistently strong. For investors seeking stability and lower acquisition costs, DG often becomes the first choice.
2. Starbucks – Premium NNN Tenancy With Strong Tennessee Growth
Starbucks continues to expand across Tennessee’s growing urban and suburban markets, including Nashville, Chattanooga, Knoxville, and fast-growing commuter towns. As more residents settle into the state, Starbucks fills in-demand lifestyle locations, especially drive-thru sites—now the company’s most profitable format.
Why Starbucks Is a Top NNN Tenant in TN
High consumer loyalty & brand authority
Strong performance at drive-thru sites
Corporate-backed leases with rental escalations
Prime real estate locations with lasting value
Starbucks NNN assets are known for their premium pricing, lower risk profile, and long-term appreciation potential. Tennessee’s steady economic growth makes the brand especially well-positioned to maintain strong store sales and high investor demand.
3. Wendy’s – A Reliable QSR Tenant With Regional Staying Power
Wendy’s has a significant presence throughout Tennessee and remains one of the most dependable QSR (quick-service restaurant) operators in the net-lease world. Often operated by experienced franchise groups, Wendy’s offers strong credit, established operations, and consistent sales performance.
Why Wendy’s Performs Well in Tennessee
Excellent performance in suburban & highway locations
Modern store redesigns improve customer traffic
Long-term leases with franchise guarantees
Steady demand for drive-thru convenience
Wendy’s NNN properties often provide slightly higher cap rates than Starbucks, creating an appealing balance between stability and yield. For many investors, this tenant becomes a “sweet spot” option: nationally recognized but competitively priced.
Why Tennessee Is Ideal for 1031 Exchange Buyers
Investors undergoing a 1031 exchange are especially drawn to Tennessee’s NNN inventory because the state offers:
A broad supply of new construction leases
Multiple tenant types: discount, QSR, convenience, retail, auto, and service
Predictable returns and long-term leases
Major growth corridors near Nashville, Knoxville & Chattanooga
1031 buyers appreciate the ability to acquire corporate-backed, long-term NNN properties quickly without sacrificing tenant quality or market fundamentals.
The Bigger Picture: NNN Momentum Continues in Tennessee
Brands like Dollar General, Starbucks, and Wendy’s show no signs of slowing down in Tennessee. Population growth, infrastructure improvements, and ongoing economic expansion ensure that these tenants will remain strong performers for years to come.
For investors looking to build or rebalance their NNN portfolio, Tennessee provides a rare mix of:
High-credit corporate tenants
Strong cap rates compared to coastal metros
Solid long-term rent stability
A business environment that supports retailer growth
Whether investing through a 1031 exchange or building a passive income strategy, Tennessee’s NNN market offers abundant opportunity.