One of the safest, most sought-after tenants in net lease, from a buyer’s broker with 8 McDonald’s closings, most recently in April 2026.
A McDonald’s NNN property is almost always a ground lease: you own the land, and McDonald’s builds and owns the restaurant. New leases typically run 20 years with 10% rent increases every five years, plus multiple renewal options, and McDonald’s pays all taxes, insurance and maintenance. Even though about 95% of U.S. restaurants are run by franchisees, McDonald’s corporate controls the real estate: it leases the land from you and subleases to its operators, so your rent comes from McDonald’s itself. That structure, BBB+ credit and a hard-to-replace brand put McDonald’s ground leases among the lowest cap rates in all of net lease, and make them a favorite of all-cash 1031 exchange buyers who value safety over yield.
Solid Investments FL has represented buyers on 8 McDonald’s transactions in Florida, from Port St. Lucie in 2010 to Lake Nona in April 2026. See them in our track record. Our buyer representation is always free to you.
| Tenant | McDonald’s corporate entity (typically McDonald’s USA, LLC); confirm the tenant and any guarantor on each lease |
|---|---|
| Parent company | McDonald’s Corporation (NYSE: MCD), Chicago, Illinois |
| Credit rating | S&P BBB+ / Moody’s Baa1 (investment grade, stable) |
| Restaurants | 45,000+ worldwide; about 13,700 in the U.S.; about 95% franchised |
| Who pays your rent | McDonald’s corporate, not the franchisee; McDonald’s controls the real estate and subleases to its operators |
| Typical lease term | 20 years on new construction |
| Lease type | Ground lease; McDonald’s owns the building |
| Rent increases | Typically 10% every 5 years |
| Renewal options | Multiple 5-year options |
| Typical cap rate (2026) | ~3.5%–4.0% for a new 20-year ground lease (average asking about 3.75%); rarely above about 4.5% today |
| Typical price range | About $2M–$4M+ |
Credit ratings as of October 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Most McDonald’s ground leases are signed by McDonald’s corporate, which then subleases to the franchise operator. Confirm the tenant entity: a lease with a franchisee is a very different credit.
You own the land and McDonald’s owns the building during the term. With essentially zero landlord responsibilities and the land as your long-term security, it is one of the most passive investments in real estate.
McDonald’s trades at premium pricing; a new 20-year ground lease generally prices around 3.5% to 4.0%, and our closings since 2016 have ranged from about 3.35% to 4.0%. At today’s interest rates, leverage rarely helps at these yields, so most buyers are all-cash 1031 investors.
A 10% increase every five years works out to roughly 1.9% per year compounded, which steadily grows your income over a 20-year lease and beyond.
Even mid-term McDonald’s leases command strong pricing. Our April 2026 Lake Nona closing, with 10.3 years left on the lease, traded at a 3.94% cap.
Drive-thru volume drives McDonald’s sales. Traffic counts, access, stacking room for the drive-thru lane and surrounding growth all matter for long-term value.
We’ve helped buyers close 8 McDonald’s transactions across Florida, from Lake Nona and Winter Park to Lakewood Ranch and Port St. Lucie. A few examples:
Fast Food / QSR
Fast Food / QSR
Fast Food / QSR
Fast Food / QSR
Fast Food / QSR
Fast Food / QSR
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that has represented buyers on 8 McDonald's transactions, including a Lake Nona ground lease that closed in April 2026. We help investors and 1031 exchange buyers find, underwrite and close McDonald's ground leases nationwide, and our buyer representation is free.
As of 2026, a new 20-year McDonald's ground lease is generally priced around 3.5% to 4.0%, with an average asking cap rate of about 3.75%, and McDonald's ground leases rarely trade above about 4.5% today. That is among the lowest of any tenant in net lease. Our McDonald's closings since 2016 have ranged from about 3.35% to 4.0%.
Investors pay a premium because McDonald's ground leases combine investment-grade corporate credit, rent paid by McDonald's corporate rather than a franchisee, 10% rent increases every five years, essentially zero landlord responsibilities and well-located land as long-term security.
As of October 2026, McDonald's Corporation is rated BBB+ by S&P and Baa1 by Moody's, both investment grade with stable outlooks.
On most McDonald's ground leases, McDonald's corporate is the tenant and pays the rent. McDonald's controls the real estate under its restaurants and subleases it to franchise operators, so the investor's rent is backed by McDonald's rather than the individual franchisee. Always confirm the tenant entity on the specific lease.
New McDonald's ground leases typically run 20 years with 10% rent increases every five years, followed by multiple 5-year renewal options.
For buyers who prioritize safety, yes. A McDonald's ground lease offers corporate-backed rent, built-in increases, no landlord responsibilities and land as long-term security, making it one of the most passive replacement properties available. The trade-off is a low cap rate, so it suits all-cash buyers more than those relying on leverage.
Generally no. With a ground lease you own only the land, which is not depreciable, while McDonald's owns the building. Investors accept that in exchange for the safety and passivity of the ground lease structure.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ve closed McDonald’s ground leases across Florida, most recently in April 2026. Tell us your budget and timeline; our buyer representation is completely free.
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