Quick-service restaurant advisory.
Drive-thru and quick-service restaurant properties, underwritten on the lease, the guarantor, and the site.
- Best for
- Owners and buyers of drive-thru and quick-service restaurant properties
- Recent closing
- McDonald’s, Sacramento, CA (seller representation)
- Lease types
- Ground leases, absolute NNN, and NN building leases
Lease and guarantor analysis.
Two restaurants operating under the same brand can trade at materially different prices, depending on the details buyers examine most closely.
A corporate-guaranteed ground lease from a national brand behaves very differently from a building lease signed by a franchisee operating a handful of units. Drive-thru capacity, stacking, access from both directions, and daytime population all affect how a buyer views the site’s long-term viability. And because many QSR leases run 15 to 20 years with fixed increases, the rent schedule and option terms deserve close reading.
The analysis applies across the quick-service spectrum, from established burger brands to fast-casual and drive-thru coffee concepts, and to automotive service tenants such as Take 5 and Valvoline that share many of the same site characteristics.
For sellers, this means presenting the strengths buyers value and preparing clear answers on the operator. For buyers, it means distinguishing the brand from the credit and the improvements from the land.
QSR services.
QSR buyers conduct detailed diligence on the operator and the site. The team prepares those answers in advance.
Brand & guarantor review
Distinguishing brand strength from lease credit, and assessing how buyers will view a corporate or franchisee guarantor.
Site & drive-thru analysis
Stacking capacity, ingress and egress, traffic, visibility, and nearby demand generators that support sales.
Ground lease expertise
Ground leases are common in QSR. The team advises on how they are valued, how improvements revert and the implications for depreciation.
Pricing to the market
QSR cap rates vary widely by brand, guarantor and term, and pricing is benchmarked against direct comparables rather than averages.
Exchange-ready marketing
QSR assets are in demand among 1031 buyers, and offerings are marketed to them directly with materials that address lender requirements.
Operator coordination
Estoppels, ROFR waivers, and tenant communication handled professionally and on schedule.
The QSR disposition process.
Defined milestones, managed by the same advisors from engagement through closing.
Abstract
Lease, guarantee, ROFR, and option terms summarized.
Site study
Traffic, access, demographics, and competition.
Price
Comparable QSR trades and current demand.
Market
Targeted outreach to QSR and exchange buyers.
Close
Estoppels, ROFR, diligence, and closing.
Why do QSR properties sell at such different cap rates?
Brand, guarantor, lease type, remaining term, rent increases, and site quality all vary. A corporate ground lease with a long term typically attracts more buyers than a short-term franchisee building lease, even under the same brand.
What is a ground lease, and is it a good investment?
In a ground lease, the investor owns the land and the tenant owns or built the improvements. They are often highly passive investments. Because land isn’t depreciable, the tax profile differs from a building lease, so discuss it with your CPA.
Does a franchisee guarantee hurt value?
It changes how buyers underwrite the lease. A large, experienced franchisee with many units may be viewed favorably; a small operator may not. The team helps buyers evaluate the operator and helps sellers present the operator’s profile clearly.
Do QSR leases have rights of first refusal?
Some do. A ROFR can add time to a sale and must be handled correctly, so it is identified early and built into the timeline.
Discount & Auto Retail
Dollar General, Family Dollar, Dollar Tree and auto parts properties.
Read moreNet Lease Dispositions
Seller representation for NNN and NN retail investment properties.
Read moreAcquisitions & 1031 Exchanges
Buyer representation and replacement-property sourcing for exchange investors.
Read moreRequest a confidential valuation.
There is no cost or obligation.