Chick-fil-A NNN Cap Rates in San Antonio, TX: What Investors Are Paying Now

Market Overview: The Chick-fil-A Premium in Bexar County As of June 2026, San Antonio's retail landscape continues to be a primary target for 1031 exchange capital seeking yield stability. Chick-fil-A (CFA) remains the 'crown jewel' of the Quick Service Restaurant (QSR) sector. In the San Antonio-New Braunfels MSA, the scarcity of these assets, combined with the tenant's refusal to franchise in the traditional sense, creates a unique supply-demand imbalance. Institutional and private investors are currently valuing these assets based on more than just the credit of the operator; they are looking at the 'real estate fundamentals' of the site, specifically its ability to handle massive throughput volume. In San Antonio, where urban sprawl and reliance on vehicular transit are high, a CFA location with an efficient double-drive-thru is often viewed as a generational hold. Current Cap Rate Environment Cap rates for Chick-fil-A assets in San Antonio have shown remarkable resilience despite fluctuations in the 10-year Treasury yield. While broader QSR cap rates have drifted upward, CFA's 'investment grade' aura maintains a tight spread. | Location Profile | Typical Cap Rate Range | Lease Type | | :--- | :--- | :--- | | Premium/A+ (The Rim, La Cantera) | 4.10% - 4.25% | Ground Lease | | In-Fill / Mature Suburban (Alamo Heights) | 4.25% - 4.50% | NNN / Ground Lease | | Emerging Growth (Far West Side, Stone Oak) | 4.40% - 4.75% | NNN | | Short-Term Lease / Older Build | 4.90% - 5.25% | NNN | The data shows that investors are willing to accept a sub-4.5% yield for sites located within the 'Golden Triangle' of San Antonio's highest growth corridors. The spread between a Chick-fil-A and a secondary QSR brand like Burger King or Arby's remains approximately 75 to 125 basis points in this market. Underwriting the San Antonio Ground Lease Most Chick-fil-A deals in the San Antonio MSA are structured as absolute NNN ground leases. For an investor, this provides the cleanest form of passive income. The tenant owns the improvements (the building), while the investor owns the land. Key Lease Metrics to Evaluate: * Lease Term Remaining: New San Antonio developments typically feature 15-year or 20-year initial terms. Assets with under 10 years remaining trigger a 're-tenanting' risk analysis, though CFA's historical renewal rate is nearly 100%. * Rental Increases: Look for 10% bumps every five years. In a persistent inflationary environment, these scheduled increases are vital to maintaining the investor's real yield. * Sales Performance: While CFA rarely discloses unit-level sales to the public, an analysis of the 'lease coverage ratio' is essential. High-performing San Antonio units can exceed $8 million in AUV (Average Unit Volume), making the rent-to-sales ratio incredibly healthy. Submarket Spotlight: The North Loop 1604 Corridor The expansion of Loop 1604 has catalyzed significant retail development. Chick-fil-A locations along this corridor—particularly at intersections with I-10, Highway 281, and Culebra Road—command the lowest cap rates in the region. The high density of rooftops and high household incomes in zip codes like 78258 and 78253 provide the necessary traffic counts to support the heavy throughput requirements of the tenant. When evaluating a San Antonio site, investors must consider the 'stacking' potential of the drive-thru. San Antonio municipal codes have become more stringent regarding 'spillover' traffic onto public roads. Assets that feature deep-stacking lanes or dedicated ingress/egress outparcels are worth a 10-15 basis point premium because they face less risk of future municipal intervention or вынужденная (forced) layout modifications. Sale-Leaseback Trends and Corporate Backing Chick-fil-A, Inc. maintains a high degree of control over their real estate. Unlike other brands where a franchisee might be the sub-lessee, most transactions in our marketplace feature the corporate entity as the primary tenant. This corpor…