Fast-Food Properties Selling Above Their Asking Price
Spending in bars and restaurants has been healthy.
Spending at restaurants and bars rose 8.5 percent over the past year ending in August, the largest gain among retail categories, and more good news is expected for retailers given forecasts for increased Halloween candy sales, according to Marcus & Millichap’s latest retail report.
August also was a good month for fast casual and quick-service restaurants, according to the report.
Across restaurant categories, Starbucks, Chipotle, Burger King, Jack in the Box, and Chick-fil-A each ranked among the top performers in terms of year-over-year sales growth through August as consumers continue to rely on lower-cost dining options to compensate for their tighter budgets.
This is giving a boost to net-leased assets, along with vacant properties with drive-thrus, Marcus & Millichap said.
Recent pricing trends reflect buyers’ confidence in the quick service segment, it said.
For the first nine months of 2023, fast-food properties sold 1.4 percent above their asking price on average, a contrast to other retail segments.
A healthy percentage of deals (one in eight) were those located in either in a major Texas or Mountain West metro.