Tenant Description

Jack in the Box is a fast food hamburger chain located in 21 states across the country and heavily concentrated in California and Texas.

Favorable lease terms and strong site selection criteria make Jack in the Box properties attractive to net lease investors. Their typical leases are long triple net leases with built-in rent increases. The nature of a triple net lease relieves the investor of any landlord responsibilities while the rent increase hedge against inflation. Jack in the Box restaurants are typically located in high visibility, desirable locations that allow for allow for superior access and convenience fortheir customers; valuable and necessary traits for any retail tenant, (not just a QSR).

Based out of San Diego, CA they operate over 2,200 Jack in the Box restaurants in 21 US states and Guam (90% of which are franchises); leaving ample opportunity for expansion into new markets. They were the first major hamburger chain to develop and nationally expand the concept of drive-thru restaurants. Drive-thru traffic accounts for about 85% of Jack in the Box sales.

In 2003 Jack in the Box Inc. acquired Qdoba, a fast casual Mexican restaurant, to supplement their core growth, and subsequently sold it in 2018 to Apollo Global Management.

Real Estate Summary

Under Construction.

  • Industry-leading investment-grade credit
  • Compressed cap rates due to high investor demand
  • Rental escalations in base term
  • Generally high rental rates PSF that could prove hard to replace in the event 7-Eleven vacates
  • Low price point relative to similarly strong investment-grade tenants
  • Investor unable to depreciate improvements in ground-leased locations
  • Predominantly Absolute to Modified NNN ground leases with zero to limited landlord responsibilities
  • Widely considered "recession proof"
    and "Amazon proof"
  • Industry-leading market share and track record of profitability
  • Predominantly corner locations in urban markets with excellent demographics and population density
  • One of the lowest relocation rates in the net lease industry
  • Development Criteria Highlights

    • 50,000 +/- square feet of Land
    • Corner or corner wrap w/signage on two major streets.
    • Signalized intersection.
    • Ability to build up to 4,000 sq. ft.
    • Parking to meet all applicable codes.
    • Ability to build to a minimum height of 23’4″.

    Average Cap Rate
    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated quarterly)
    Credit Rating
    Standard & Poor's
    Company Snapshot
    Company Name

    McDonalds Corp.

    Ownership Type


    Stock Symbol



    Oak Brook, IL

    Locations Worldwide


    Locations in the U.S.




    Average Property & Lease
    Sales Price


    Annual Base Rent


    Annual Rent PSF


    Building SF


    Price PSF


    Lot Size

    1.15 Acres

    Ownership Interest

    Fee Simple Land
    (Ground Lease)

    Lease Structure

    Absolute NNN

    Lease Term

    20 Years


    10% Every 5 Years


    McDonald's Corp.

    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated quarterly)