Chipotle: Commercial Property Profile
Chipotle Mexican Grill, Inc. is an American quick service restaurant food chain that specializes in Mission-style burritos and tacos, which it serves at a walk-up food counter. Headquartered in Denver, Colorado, Chipotle operates restaurants in the United States, United Kingdom, Canada, Germany, and France. As of 2021, the company has more than 3,000 locations and is publicly traded on the New York Stock Exchange as CMG, with a market capitalization of $13.75 billion.
Chipotle net leased properties are considered secure and profitable commercial real estate investments for several reasons. First and foremost, Chipotle is a highly sought after brand in the fast-food industry, known for its high-quality ingredients and commitment to sustainability. This reputation has led to the success of its locations, making them desirable sites for commercial real estate investors. Additionally, Chipotle has a strong credit rating, which provides added security for investors.
When it comes to net leased investments, cap rates and sales prices are two key indicators of profitability. Since 2017, the average cap rate for Chipotle net leased properties was 4.85%. This is considered to be on the lower end of the spectrum, indicating that these properties are in high demand and have a low risk of vacancy. The average sales price for a Chipotle net leased property since 2017 was $1,880,000.
Primary lease terms for Chipotle net leased properties are generally a 10-15 year triple net ground lease. This type of lease requires the tenant to pay for property taxes, insurance, and maintenance in addition to rent. This provides added security for the landlord and reduces the risk of unexpected expenses.
In summary, Chipotle net leased properties are secure and profitable commercial real estate investments. Chipotle's reputation, credit rating, and history of success make its locations desirable sites for investors. Chipotle net leased properties typically have a low cap rate and high sales price, and the primary lease term is a 10-15 year triple net ground lease. Chipotle's market capitalization is $13.75 billion. If you're looking for a commercial real estate investment that is backed by a strong brand and a track record of success, Chipotle net leased properties are worth considering.
Credit: Northmarq
Chipotle
Oklahoma
Price: $3,537,000
Cap Rate: 4.09%
NOI: $145,000
Rentable SQFT: 2,325 SF
Year Built: 2022
Lot Size: Drive-Thru Pad
Lease Type: Absolute NNN
Need financing for a single tenant net leased property? Learn more about our Retail Financing Programs!