In the first quarter, nationalasking cap rates in the single-tenant casual dining sectorincreased to 6.59%, according to The Boulder Group's 2020 Net LeaseCasual Dining Report. That was a 27-basis point increase comparedto Q1 2020.
Cap rates didn't increase evenlyacross casual dining. Those properties with guaranteed leasesgenerated cap rates of 6.25%, while franchisee leased propertieshad cap rates of 7.00%.
Both corporate and franchiseeguaranteed leases experienced increases of 10 and 15 basis pointsrespectively over the past year. Cap rates for casual diningproperties leased to franchisees can vary depending on the strengthof 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.
