QSR Net Leases See Growing Demand

CHICAGO—Investors have been pouring money into the single tenant net lease market, pushing down cap rates to historic lows, and demand for quick service restaurants, both corporate owned and franchisees, has accelerated in the past year, according to a new study by the Boulder Group, a commercial real estate firm in suburban Chicago.

“Buyers are moving past core metros in search of higher yield,” Randy Blankstein, president of Boulder, tells GlobeSt.com, and “the surge in QSR demand is causing more tenants to enter sale leasebacks to take advantage of current market pricing.”