How 100% Bonus Depreciation Is Reshaping the NNN Landscape

NX3 Commercial Group, one of the most active net lease teams in the country, is leading the charge for buyers chasing bonus-depreciation-eligible NNN property nationwide

FORT LAUDERDALE, FL / ACCESS Newswire / July 9, 2026 / A single line in the tax code is quietly rewriting how investors think about NNN property. Since the One Big Beautiful Bill (OBBB) was signed into law on July 4, 2025, permanently restoring 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025, demand for bonus-depreciation-eligible net lease assets has surged. NX3 Commercial Group, one of the most active net lease teams in the country with over $2 billion in NNN property sold nationwide, is leading the charge for buyers hunting these opportunities from coast to coast.

The firm is seeing a sharp increase in demand for property types that qualify for the write-off, with two asset classes standing out above the rest: gas stations and car washes.

Why Gas Stations and Car Washes Are Suddenly in Demand

Most commercial buildings are depreciated over 39 years, which spreads the tax benefit out over decades. Gas stations and car washes are different. Under IRS class-life rules, service station buildings and car wash structures are treated as 15-year property rather than 39-year real property. Because bonus depreciation applies to any asset with a recovery period of 20 years or less, that 15-year classification is what unlocks the deduction. The building itself qualifies.

Car washes take it even further. So much of a car wash's value sits in conveyors, dryers, vacuum systems, water reclamation equipment, paving, and other short-life components that a large share of the purchase price, often the vast majority once land is excluded, can be written off in the first year of ownership. Gas stations, with their canopies, pumps, tanks, and site improvements, follow the same logic. Paired with a cost segregation study, these assets let investors accelerate an enormous portion of their basis into year one instead of waiting decades to see it.

For an investor carrying a large tax burden, that first-year deduction can be worth hundreds of thousands, or even millions, of dollars.

"The going in CAP rate doesn't so much matter for the investor who has the potential to write a couple million dollars off their tax return, and rightfully so," said Luke Thomson of NX3 Commercial Group. "There really isn't a more powerful write-off tool out there now."

The Ripple Effect: A Run on New 7-Eleven Stores

That tax dynamic is driving a wave of demand into a familiar name. New-construction 7-Eleven stores have become one of the most sought-after NNN property types on the market. These deals typically feature 15-year absolute NNN leases, are corporate-backed by an investment-grade, A-rated credit tenant, and generally trade around a 5% to 5.5% CAP rate.

For buyers focused on tax strategy, the entry yield has become almost secondary to the write-off. When a property can generate a seven-figure first-year deduction, a fifty-basis-point difference in the going-in CAP rate is a rounding error next to the after-tax return.

"Pretty much every three calls we take involves a discussion about bonus depreciation," said Robert Zahralban of NX3 Commercial Group. "It's gaining popularity across the entire country."

Car Washes: The Other Bonus Depreciation Powerhouse

Outside the gas sector, and for clients who are still targeting 100% bonus depreciation, absolute NNN leased car washes have become wildly popular as well. Operators like Whistle Express, Mister Car Wash, and El Car Wash each run more than 100 locations, and their properties typically trade at or above a 6% return on 20-year absolute NNN leases.

The combination is hard to beat: a long-term, hands-off lease to a national operator, a higher going-in yield than most single-tenant retail, and one of the most equipment-heavy building types in all of commercial real estate. Investors looking for write-offs to offset income have been benefiting tremendously from this One Big Beautiful Bill (OBBB) tax strategy, and car washes have quickly become one of the clearest ways to capture it.

Why Waiting Until Year-End Is a Mistake

With this much demand chasing a limited pool of eligible product, NX3 Commercial Group is urging investors not to wait until the fourth quarter to start looking.

"We see it every year, investors waiting until November or December to close on a property for the fiscal year," said Luke Thomson of NX3 Commercial Group. "With the demand we're seeing for 100% bonus depreciation property now, it's really unwise to wait that long. You will be competing with so many investors, which leads to full-price offers, over-asking-price offers, and investors even putting non-refundable money down upon signing of a purchase agreement."

The math is simple. Demand is strong, and there is a limited supply of new 7-Eleven stores being built at any given time. The investors who move early are the ones securing the best assets at the best terms, while those who wait until year-end are left competing on price. The time to act is now.

Frequently Asked Questions

What is 100% bonus depreciation?

100% bonus depreciation is a provision of the tax code, permanently restored by the One Big Beautiful Bill in 2025, that lets investors deduct the full cost of qualifying property in the first year it is placed in service rather than spreading the deduction over decades. It applies to property with a recovery period of 20 years or less.

Why do gas stations and car washes qualify for such large first-year write-offs?

Gas station and car wash buildings are classified as 15-year property rather than the standard 39-year commercial real property. Because bonus depreciation applies to assets with a recovery period of 20 years or less, the building qualifies. Car washes in particular hold a very high proportion of short-life equipment, allowing a large share of the purchase price to be written off in year one.

What kind of 7-Eleven properties are investors buying?

Investors are targeting new-construction 7-Eleven stores on 15-year absolute NNN leases, corporate-backed by an investment-grade, A-rated credit tenant, typically trading around a 5% to 5.5% CAP rate.

Can bonus depreciation be combined with a 1031 exchange?

Yes. Many investors pair the two strategies, using bonus depreciation on the new basis created in a 1031 exchange to further reduce their tax liability. Every situation is different, so investors should confirm the specifics with their own CPA.

https://nx3commercialgroup.com/2026/05/06/bonus-depreciation-cost-segregation-for-nnn-investors/

Who is NX3 Commercial Group?

NX3 Commercial Group is a Fort Lauderdale-based national net lease brokerage and one of the most active net lease teams in the country, with over $2 billion in NNN property sold nationwide.

About NX3 Commercial Group

NX3 Commercial Group is a national net lease brokerage based in Fort Lauderdale, Florida, and one of the most active net lease teams in the country, with over $2 billion in NNN property sold nationwide. The firm specializes in NNN property acquisitions, dispositions, and 1031 exchanges, and is a leading source for bonus-depreciation-eligible net lease assets including gas stations, car washes, and new-construction 7-Eleven stores. If you are looking to buy or sell NNN property, contact NX3 Commercial Group today.

https://nx3commercialgroup.com/

NX3 Commercial Group are commercial real estate brokers, not licensed accountants. Always consult with your tax professional before deciding if bonus depreciation property can benefit you.

Media Contact

NX3 Commercial Group
500 E Broward Blvd, Suite 920
Fort Lauderdale, FL 33394
[email protected]

SOURCE: NX3 Commercial Group LLC

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