In the first quarter, national asking cap rates in the single-tenant casual dining sector increased to 6.59%, according to The Boulder Group's 2020 Net Lease Casual Dining Report. That was a 27-basis point increase compared to Q1 2020.
Cap rates didn't increase evenly across casual dining. Those properties with guaranteed leases generated cap rates of 6.25%, while franchisee leased properties had cap rates of 7.00%.
Both corporate and franchisee guaranteed leases experienced increases of 10 and 15 basis points respectively over the past year. Cap rates for casual dining properties leased to franchisees can vary depending on the strength of the guarantor, according to The Boulder Group.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
