NX3 Commercial Sells 7-Eleven in Cleburne, TX in the Low 5% Cap Rate Range

Bonus Depreciation Is Compressing 7-Eleven Cap Rates in Texas and Florida. A Cleburne, TX fueling asset traded in the low 5% range with just 10 years of lease term is evidence that tax-motivated cash buyers are repricing mid-term net lease product.

7-Eleven in Cleburne, TX Sells in the Low 5% Cap Rate Range with 10 Years of Lease Term

CLEBURNE, TX / ACCESS Newswire / September 3, 2026 / Luke Thomson of NX3 Commercial Group represented the buyer in the acquisition of a single-tenant net lease 7-Eleven in downtown Cleburne, Texas, which traded in the low 5% cap rate range. The transaction closed July 22, 2026 with 10 years remaining on a corporate-guaranteed absolute NNN lease expiring April 2036. The buyer was a private New York-based investor who purchased all cash, with no 1031 exchange requirement, specifically to capture bonus depreciation.

A 10-year lease clearing a cap rate this low is the notable part of the transaction, and the reason has more to do with the tax code than with the real estate.

Transaction Summary

Why did a 10-year 7-Eleven trade in the low 5% cap rate range?

Remaining lease term is normally the single largest driver of net lease pricing. Comparable 7-Eleven properties currently listed on LoopNet are being offered at asking cap rates ranging from roughly 4.90% to the high 5% range, with pricing tightening as remaining lease term lengthens.

This property closed in the low 5% cap rate range with 10 years remaining. That is inside where new 15-year product typically trades, on a lease with five fewer years of guaranteed income.

The explanation is the buyer. This was an all-cash private investor with no debt to service and no exchange deadline, underwriting the acquisition primarily for its first-year tax deduction. A buyer in that position is largely indifferent to the two variables that normally set net lease pricing. There is no loan constant to clear, so the cost of debt is irrelevant. And when a substantial share of basis is being deducted in year one, the back half of the lease term matters far less to the return than it would to a leveraged buyer holding for income.

The real estate supported the pricing. The site sits on a downtown Cleburne corridor carrying 30,000 vehicles per day, surrounded by established retail, in a trade area with $90,000 average household income. Corporate credit from 7-Eleven, Inc. - rated A by S&P and owned by Seven & i Holdings - sits at the top of the convenience store credit stack, with Circle K assets typically trading 50 to 75 basis points wider for otherwise comparable real estate. The 10% escalations every five years give the income stream inflation protection that flat-rent structures lack.

What is driving 7-Eleven cap rate compression in Texas and Florida?

New 7-Eleven listings in Texas and Florida are now coming to market at asking cap rates as low as 4.90%. The primary driver is tax treatment, not interest rates.

The One Big Beautiful Bill Act, signed in July 2025, permanently restored 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025. The IRS issued interim guidance in Notice 2026-11 in January 2026. That reversed a phase-down schedule which would have cut the deduction to 40% and eliminated it entirely by 2027.

For most net lease retail, bonus depreciation reaches only the portion of basis a cost segregation study can reclassify into shorter recovery periods - land improvements, signage, site work. Convenience stores with fuel can be different. Under IRC §168(e)(3)(E)(iii), a property meeting the retail motor fuels outlet test is treated as 15-year property rather than 39-year. Because 15-year property is bonus-eligible, a far larger share of basis can be deducted in year one.

That is a materially larger first-year deduction than a comparable non-fuel retail asset produces, and it explains why fueling sites are compressing faster than the broader net lease market. Qualification depends on facts specific to each property and should be confirmed with a tax advisor. NX3 Commercial Group does not provide tax advice.

Supply is the second factor. Net lease inventory tightened through the first half of 2026 while transaction volume held steady, and the highest-credit c-store product is the thinnest part of that inventory.

What this means if you own a 7-Eleven

The conventional assumption is that a net lease asset needs long remaining term to command aggressive pricing, and that owners of mid-term leases should either wait, extend, or accept a wider cap rate. This transaction argues otherwise for fueling assets.

Cash, tax-motivated buyers are less rate-sensitive and less term-sensitive than the leveraged 1031 buyer who has historically set pricing in this sector. That reopens the market for owners holding leases with eight to twelve years remaining - product that would have been difficult to price this way two years ago.

Owners waiting on Fed policy to move cap rates may be watching the wrong variable. The compression happening in this segment is coming from the tax code.

If you own a 7-Eleven or another fueling asset in Texas or Florida and want to know where it prices in today's market, contact NX3 Commercial Group.

Frequently Asked Questions

What cap rate do 7-Eleven NNN properties trade at? 7-Eleven cap rates vary primarily by remaining lease term, with longer leases generally pricing tighter. As of 2026, new listings in Texas and Florida are being offered at asking cap rates as low as 4.90%. This Cleburne, TX property closed in the low 5% range with 10 years remaining, inside the range typical for that duration.

Does remaining lease term still drive 7-Eleven pricing? Less than it used to for fueling assets. Buyers acquiring for bonus depreciation with all-cash structures weight the first-year deduction heavily relative to residual term, which has compressed the historical spread between long-term and mid-term product.

Is a 7-Eleven lease corporate guaranteed? Many 7-Eleven net lease properties, including this one, carry a corporate guarantee from 7-Eleven, Inc., rated A by S&P and owned by Seven & i Holdings. Confirm the guarantor on any specific offering - franchisee-guaranteed locations exist and price differently.

Does a 7-Eleven qualify for 100% bonus depreciation? A 7-Eleven with fueling may qualify as a retail motor fuels outlet under IRC §168(e)(3)(E)(iii), which classifies the property as 15-year rather than 39-year and makes it bonus-eligible. Non-fuel c-store locations do not receive that treatment, though a cost segregation study can still reclassify a portion of basis. Eligibility turns on property-specific facts and must be confirmed with a tax advisor.

What are typical 7-Eleven lease terms? New construction 7-Eleven leases are generally 15 years, absolute NNN, with 7.5% to 10% rent increases every five years and multiple renewal options. The tenant is responsible for taxes, insurance, roof, structure, and maintenance, leaving the landlord with no management obligations. This Cleburne property was a 15-year lease commencing April 2021 with 10% increases every five years.

Why are Texas commercial sale prices not public? Texas is a non-disclosure state. Sale prices are not recorded in public records, which is why cap rates reported by brokers who transacted directly are often the only reliable pricing data available in the market.

Luke Thomson is a Broker at NX3 Commercial Group specializing in single-tenant net lease investment sales. NX3 Commercial Group has closed more than $2 billion in net lease transactions across 30 states. You can contact Robert Zahralban and Luke Thomson at 631-438-9908

SOURCE: NX3 Commercial Group LLC