Tenant Description

Operational Summary

7-Eleven, Inc. is the North American subsidiary of 7 & I Holdings, Inc., a Japanese-owned international chain of convenience stores. 7 & I Holdings, Inc. is the largest convenience store operator in the world; as of 2021, the company operates, franchises and licenses over 71,100 locations across the globe, including over 9,500 company-owned and franchises stores in the United States under the 7-Eleven, Inc. subsidiary. Originally known as the Southland Corporation in the U.S., the original American company was purchased out of bankruptcy by the Japanese corporation IYG Holding Company in 1991, which changed the company’s name to 7-Eleven, Inc. in 1999. Ito-Yokado Co., Ltd., the most profitable retailer in Japan, owned 51 percent of IYG at the time of the acquisition, and Seven-Eleven Japan Co., Ltd., the longtime 7-Eleven licensee in Japan, owned 49 percent.

In 1992, 7-Eleven completed additional financing for a $400 million commercial paper facility backed by Ito-Yokado aimed at streamlining its operations. Also in 1992, the company decided to leave the distribution and food processing business to focus on its core business: retail locations operating under the 7-Eleven brand. By 1996, the company had completed the most extensive store remodeling program in its history. Additionally, the company closed additional underperforming stores in the mid-to-late 1990s, shuttering 202 units from 1996 through 1998. By mid-1999, 7-Eleven had recorded eight straight quarters of U.S. same-store sales growth, the longest such stretch in the 1990s. As it looked ahead, 7-Eleven was counting on the full implementation of its retail information system to be the engine driving its growth well into the 21st century.

Today, 7-Eleven, Inc. is one of the largest, most successful retailers in the U.S. Supermarket News ranked 7-Eleven’s North American operations No. 11 in the 2007 “Top 75 North American Food Retailers” based on the 2006 fiscal year estimated sales of $15 billion. In 2010, 7-Eleven climbed to the No. 3 spot in Entrepreneur Magazine’s 31st Annual Franchise 500, “the first and most comprehensive ranking in the world,” marking the 17th year 7-Eleven was named in the top ten.

Real Estate Summary

Due to the company’s investment-grade credit rating, coupled with the relatively low price points and high quality of its underlying real estate, 7-Eleven is a dominant brand in the net lease investment sales market. The vast majority of 7-Eleven stores are prominent corner locations featuring traffic counts exceeding 25,000 vehicles per day, high visibility, excellent access and strong surrounding demographics from a standpoint of population density and median household income. Furthermore, every 7-Eleven lease agreement is guaranteed by the U.S. subsidiary 7-Eleven, Inc., regardless of whether or not the location is a corporate or franchisee-operated store.

It is critical to differentiate between the two major types of 7-Eleven locations: those that feature gas pumps, and those that don’t. The non-gas convenience store, or “C-Store”, concept has a smaller footprint between 1,000 to 7,000 SF in gross leasable area that can fit into small retail strip centers, community shopping centers, retail condo spaces, and single tenant parcels between 0.5 to 1.3 acres in size. These leases are typically 10-15 years in length and feature rent escalations of 10-15% every five years. Lease structures vary considerably, but the majority are “modified” triple net (“NNN”) leases with the tenant reimbursing for all landlord expenses, or double net (“NN”) leases in which the landlord is responsible for roof, structural repairs and parking lot maintenance, with the tenant paying for property taxes, insurance and interior repairs and maintenance (HVAC repair and replacement can be either a landlord or tenant expense, which varies on a lease-by-lease basis). Regarding their gas sites, 7-Eleven prefers to sign corporate-operated ground leases at prominent corner locations, or community shopping center or power center outparcel sites between 0.8 to 1.25 acres in size. These gas site ground leases are generally 20 years in length, feature rent escalations of 10-15% every five years through the base term and options to extend, and are “absolute NNN” in structure in which the tenant pays the property taxes, insurance, and all repairs and maintenance.

  • Pros
  • Cons
  • Pros: Industry-leading investment-grade credit
  • Pros: Favorable rental escalations in base term
  • Pros: Predominantly Absolute to Modified NNN leases (fee simple and ground) with zero to limited landlord responsibilities
  • Pros: Industry-leading market share and track record of profitability
  • Pros: Recession-resilient,
  • Pros: Predominantly corner locations in urban markets with excellent demographics and population density
  • Pros: One of the lowest relocation rates in the net lease industry
  • Cons: Compressed cap rates due to high investor demand
  • Cons: Generally high rental rates PSF that could prove hard to replace in the event 7-Eleven vacates
  • Cons: Investor unable to depreciate improvements in ground leased locations

Average Cap Rate

  • 5.1%

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

Credit Rating

Company Snapshot

  • Company Name (Intl. Holding Co.)
  • Seven & i Holdings Co., Ltd.
  • Ownership Type (Intl. Holding Co.)
  • Public
  • Headquarters (Intl. Holding Co.)
  • Nibancho, Chiyoda, Tokyo, Japan
  • Company Name (U.S. Subsidiary)
  • 7-Eleven, Inc.
  • Ownership Type (U.S. Subsidiary)
  • Private
  • Headquarters (U.S. Subsidiary)
  • Irving, TX
  • Locations Worldwide
  • 71,100+
  • Locations in the U.S.
  • 9,500+

Average Property & Lease

  • Sales Price
  • $3.7MM
  • Annual Base Rent
  • $196,350
  • Annual Rent PSF
  • $59.53
  • Building SF
  • 3,298
  • Price PSF
  • $1,218
  • Lot Size
  • 1.29 Acres
  • Ownership Interest
  • Fee Simple Land
  • Lease Structure
  • Absolute NNN
  • Lease Term
  • 10 Years
  • Escalations
  • 10% Every 5 Years
  • Guarantor
  • 7-Eleven, Inc.

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

7-Eleven, Inc. (US Subsidiary)

7-Eleven, Inc. operates, franchises, and licenses a chain of convenience stores in the United States, Canada, Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway, Sweden, and Denmark. The company offers hot food, sandwiches, bakery products, breakfast, pizza, snacks, meals, coffee, salads and side dishes, cut fruits, protein box, burgers, bottled cans, beer, and wine under the brands, such as Slurpee, Big Bite, and Big Gulp. It also offers private brand products under the 7-Select brand. Additionally, the company provides its products through online application. 7-Eleven, Inc. was formerly known as Southland Corporation and changed its name to 7-Eleven, Inc. in January 1946. The company was founded in 1927 and is based in Dallas, Texas. 7-Eleven, Inc. operates as a subsidiary of Seven-Eleven Japan Co., Ltd.

About Seven & i Holdings Co., Ltd.

Seven & i Holdings Co., Ltd. is a Japan-based holding company engaged in the distribution business. The Company provides convenience stores, general supermarkets, department stores, restaurants, banks, IT services. The Company operates in seven business segments. Domestic Convenience Store segments operates convenience store businesses based on direct management and franchise systems, such as the operation of 7-Eleven stores in Japan. Overseas Convenience Store segment operates convenience stores, such as 7-Eleven overseas. Superstore segment is a retail business that provides food, daily necessities and other items necessary for daily life. Department Store segment conducts retail business. Finance-Related segment is involved in the banking, credit card business and leasing business. Specialty Store segment operates a retail business that provides specialized and distinctive products and services. Others segment is involved in the real estate business.

Business model of 7-Eleven

Customer Segments

7-Eleven primarily serves customers through its core 7-Eleven businesses. This retail chain targets a broad consumer base that includes:

  • Urban Consumers, comprising consumers located in larger metropolitan areas and cities who enjoy the convenience and efficiency of shopping at 7-Eleven stores;
  • Busy Professionals, including workers from a broad range of industries who have little time to shop at more traditional supermarket chains or prepare meals for themselves, taking advantage of 7-Eleven’s numerous snack, coffee, and food options;
  • Students and Low-Income Workers, comprising younger consumers and lower-income workers who take advantage of 7-Eleven’s cheaper products; and
  • Families, including families with young children to whom 7-Eleven’s various branded promotions, and snack and beverage products – such as Big Gulp drinks – are particularly appealing.

7-Eleven has an extensive global presence, serving customers across 17 countries worldwide, primarily in Asia and the Americas.

Value Propositions

7-Eeleven’s core business, provides value to its customers in the following ways:

  • Convenience – 7-Eleven provides a convenient and efficient shopping experience to its customers, offering hot snacks, beverages, and other products quickly and conveniently, as well as offering other services, such as cash withdrawal, from convenient locations in commercial and residential areas;
  • Customer Service – 7-Eleven provides its customers with exceptional customer service, its staff aim to provide a friendly, in-person assistance to customers and a pleasant shopping experience;
  • Accessibility and Reach – 7-Eleven operates an extensive network of retail outlets across 17 countries, with an extensive presence across major cities making the company’s services easy to find and easy to access; and
  • Brand Reputation – 7-Eleven has one of the most recognisable and popular brands in the convenience retail industry, and has a proven track record for providing high-quality, innovative services.


7-Eleven principally serves its customers through its chain of 7-Eleven-branded retail outlets. The company currently operates a network of more than 66,500 stores, primarily across Asia and the Americas.

In these stores, the company serves its customers directly through its extensive team of in-store sales and service personnel, who sell products and services directly to customers.

In addition to selling products directly through its stores, 7-Eleven also offers online shopping through its website at www.7-eleven.com.

This service allows customers to purchase products – including hot snacks and beverages – and have them delivered to their home via the 7NOW delivery service. 7-Eleven also provides customers with an app, through which they are able to access deals, rewards and benefits, and a faster checkout experience.

7-Eleven’s stores are supported by a large distribution and logistics network that includes joint distribution centres and delivery operations.

This infrastructure helps to ensure that the company has fresh food and beverage products to sell to its customers on a daily basis.

Customer Relationships

7-Eleven offers its products to customers on a self-service basis through its online store, and on a largely self-service basis through its physical retail locations.

Customers are served in-store by the company’s sales and service personnel, who sell products to customers directly.

The company seeks to establish longstanding relationships with its customers, by offering and convenient, efficient and pleasant shopping experience. The company’s personnel are key in delivering this.   

In addition to the assistance 7-Eleven offers to customers in-store, the company also provides information to customers via its website and operates a dedicated customer service team that is available over the phone to assist customers with a range of issues.

7-Eleven offers a rewards scheme to frequent customers, through which consumers are able to access deals, discounts, and rewards.

The company also uses its mobile app and website to communicate similar offers to customers. 7-Eleven additionally operates a number of social media accounts – including with Facebook, Twitter, Instagram, and Snapchat – through which it interacts directly with consumers, providing updates and handling customer queries and complaints.

Key Activities

7-Eleven functions as a holding company for various retail assets in Japan and abroad. Its principal business is the operation of the 7-Eleven retail chain across Asia and the Americas.

7-Eleven organises its operations into seven business segments: the Convenience Store segment, through which the company operates a large network of convenience stores under the 7-Eleven brand through direct operation and franchising; the Super Store segment, through which the company operates general supermarkets, food supermarkets and specialty stores; the Department Store segment, through which the company operates department stores, notably Sogo & Seibu; the Food Service segment, through which the company is engaged in the restaurant business, the contract food business and the fast food business; the Financial-related segment, through which the company is engaged in the banking service, credit card and leasing business; the Mail Order segment, through which the company is engaged in the mail order business and the sale of gift products; and the Others segment, through which the company is engaged in the IT business, and the gasoline wholesale business.

Key Partners

7-Eleven works closely with a broad range of partners in the operation of its core 7-Eleven business in Japan and overseas.

These partners can be organised broadly into the following categories.

  • Supplier and Vendor Partners, comprising the various food companies and wholesalers that provide food and beverage products and merchandise that are sold across the company’s 7-Eleven stores, as well as third-party providers of various other services;
  • Franchise Partners, comprising various companies and business owners that operate 7-Eleven stores on the company’s behalf;
  • Distribution and Delivery Partners, comprising various logistics and distribution companies that assist in the storage and distribution of products sold across 7-Eleven’s network of stores, as well as delivery service providers that support the company’s home delivery services;
  • Branding and Marketing Partners, comprising various brands, companies, and organisations that collaborate with 7-Eleven on various co-branding, marketing, and business development projects; and
  • Strategic Partners, comprising a range of companies and organisations that work with 7-Eleven on various other community, IT, and business projects.

In recent years, 7-Eleven has partnered with WD Partners on ways to update the look and experience of its stores, and with NEC, as part of a strategic IT partnership for the global 7-Eleven network.

Key Resources

7-Eleven’s key resources are its products and inventory, its suppliers and supply chain, its storage and distribution infrastructure, its personnel, and its physical retail locations.

Most key to the company’s operations are the products its offers and its sales personnel, both of which are essential in providing the customer experience for which 7-Eleven is known.

The company’s business also depends on its IT and communications infrastructure – in particular with regard to its online store and mobile app, and various its partnerships.

Cost Structure

7-Eleven incurs costs in relation to the procurement, storage, and distribution of its products across its network of stores around the world, as well the payment of salaries and benefits to its extensive global workforce across its offices, stores, and distribution centres. 

The company also incurs costs in relation to the development and maintenance of its IT and communications infrastructure, the management of its partnerships, the procurement of external services and equipment, and the implementation of marketing campaigns.

Revenue Streams

7-Eleven generates revenue primarily through the sale of snacks, beverages, and other convenience products to consumers via its network of retail outlets.

Its revenue is derived principally from direct, in-store sales, as well sales made via its online store and delivery service. 

7-Eleven also generates a portion of its revenue through the collection of franchising fees from various companies and business owners that operate 7-Eleven stores as franchisees.

7-Eleven, Inc.
Industry Retail (Convenience stores)
Founded 1927; 93 years ago (1927) (as Tote'm Stores)
Founder Joe C. Thompson
Headquarters ,
Number of locations
Key people
Joseph DePinto (CEO & President) Stanley Reynolds (EVP & CFO)
Products Slurpee beverage Big Gulp beverage cup Other products include: coffee, candy, prepared foods, gasoline, dairy, snacks, various assortment of beverages
Number of employees
45,000 (2010)
Parent Seven & I Holdings Co. (2005–present)
Website www.7-eleven.com
Seven & i Holdings Co., Ltd.
Native name
Kabushiki gaisha Sebun ando Ai Hōrudingusu
Public KK
Traded as TYO: 3382 TOPIX Core 30 Component
Industry Retailing
Founded September 1, 2005 (2005-09-01) (from merger)
Headquarters 8-8, Nibancho, Chiyoda, Tokyo, Japan
Key people
Ryuichi Isaka, President
Services Department stores, Superstores, Supermarkets, Convenience stores, Restaurants, Financial services
Revenue Decrease ¥4.786 trillion (2012)
Increase ¥292.06 billion (2012)
Increase ¥129.83 billion (2012)
Total assets Increase ¥3.889 trillion (2012)
Total equity Increase ¥1.860 trillion (2012)
Number of employees
55,011 (2013)
Subsidiaries Seven-Eleven Ito-Yokado Sogo & Seibu Seven Bank
Website www.7andi.com