Which Are the Most Desired Quick Service Restaurants in the Net Lease Sector?

Private investors continue to have an insatiable appetite for QSRs. These are the strongest brands in the sector.

February 5, 2020 | Liz Wolf | National Real Estate Investor

Cap rates for net-leased quick-service restaurants (QSR) have been pushed to record lows recently by private and 1031 exchange investors with an insatiable appetite for the properties.

Private buyers accounted for more than 80 percent of QSR assets sold in the first half of 2019, according to the Second Quarter 2019 QSR Net Lease Report by The Boulder Group, a national commercial real estate firm that focuses on the net lease sector. (This is the company’s most recent QSR report).

“The primary QSR investors continue to be private 1031 exchangers who are selling their more management-intensive real estate, like multifamily assets, and trading into passive net lease investments,” says Mike Matter, director at Stan Johnson Co., a brokerage firm specializing in the single-tenant net lease sector.