A report from Avison Young gave a status update on quick service restaurants and how they have been holding up under CRE strain. Which has been pretty well, given circumstances.

The U.S. market has a current count of 195,507 QSR locations and is valued at a current $406.7 billion. The firm projects a 10.28% expected growth from now through 2029. "These expectations reflect the resilience of the QSR industry, particularly in the net lease sector, as it continues to adapt to the constantly evolving landscape," they wrote. Yum! Brands is the company with the leading market share of 6.47%.

Average 12-month trailing cap rate was 5.44%. That is 64 basis points below the 6.08% average for all single-tenant net lease. Starbucks had an average cap rate of 5.32%; Dutch Bros. was 5.06%; 4.70% for Chipotle; and Taco Bell with 5.56%. "Notably, cap rates for this sector have not increased at the pace that interest rates have for this past year," the firm wrote. "Factors that cause this are the high and consistent demand for QSRs and a lag in the real estate market for repricing these assets."