How to Find McDonald's Real Estate Opportunities in 2025
Finding McDonald's real estate opportunities in 2025 provides investors with a unique chance to invest in one of the world's most successful brands; one that's known not only for its iconic food offerings, but also for its strategic real estate approach.
In this guide, we'll go over McDonald's real estate model, how to find adequate real estate opportunities, and why working with a reputable real estate broker can make all the difference.
Why Real Estate Matters in Fast Food
McDonald's restaurants aren't just about fast food, milkshakes, and Big Mac hamburgers; the fast food giant's business model also involves real estate. McDonald's Corporation is actually one of the largest commercial real estate owners worldwide, with a focus on acquiring and managing prime locations for its fast-food chains.
However, while 40% of McDonald's locations are company-owned as part of its real estate investment trust (REIT), McDonald's actually leases approximately 60 of the real estate occupied by its fast food restaurants.
This is a fantastic opportunity for real estate investors, as McDonald's typically occupies prime locations on long-term ground leases. This accessibility and visibility are key to the company, making such strategically placed real estate appealing to both franchise agents and investors.
McDonald's business model also relies on triple-net (NNN) ground leases when it comes to real estate. This means that the property's taxes, insurance, and maintenance costs are paid by the tenant, an approach that benefits investors as it creates predictable income streams. As most McDonald's leases are "ground lease", McDonald's builds their own building on the site. This means McDonald's has a tremendous commitment to the location, as they're bearing a large cost up-front.
How to Identify McDonald's Real Estate Opportunities in 2025
One of the best ways to identify McDonald's real estate opportunities is to consult with real estate companies and brokers that specialize in NNN leases. Brokers that specialize in single-tenant net lease retail properties often have insight into off-market deals, along with the expertise to advise on the pros and cons of a specific deal.
Investors looking to find these opportunities can also analyze local demographics, economic growth, and traffic flow in a particular area. McDonald's locations are always strategically placed in areas with high visibility and plenty of foot traffic. Understanding these market trends is really important when it comes to identifying potential McDonald's properties.
Benefits of Investing in McDonald's Real Estate
Ray Kroc joined McDonald's as a franchising agent, and after perfecting his own franchising techniques, he bought out the McDonald's brothers and significantly diversified the company's portfolio to include much more than just franchise agreements; it also contains real estate, making McDonald's into a real estate empire.
Besides the food business, the real estate portion of McDonald's business portfolio is quite exciting, as the company continues to grow its profit by mitigating some risks of franchising by leasing its own property to franchise owners charging them franchise fees.
The number one reason for investing in McDonald's real estate is stability; the company is a globally recognized and trusted brand, which significantly reduces the investment risk. Additionally, the franchise also makes long-term leases, which are guaranteed by McDonald's corporate (investment grade credit) , ensuring consistent income for investors leasing the property to the company.
How Can Equity Retail Brokers Help?
Equity Retail Brokers are experts in commercial real estate, offering services from tenant representation to asset management, NNN leases, and other commercial real estate services. We work closely with investors and developers to identify and secure real estate opportunities, negotiate leases, and optimize investments.
