chi-Tacobell While overall median cap rates decreased, the supply of QSR properties increased by about 26% year over year.

CHICAGO—Cap rates in much of the single tenant net lease sector hit historic lows during the economic recovery, but recently those declines have moderated. The net lease quick service restaurant sector, however, saw its median cap rates sink to 5.7% in the second quarter of 2016, a compression of 10 bps from the prior year, according to a new report from the Boulder Group, a Northbrook, IL-based net lease firm.

Boulder found big differences between QSR properties leased to franchisees and corporate-leased properties. The cap rate for the former declined by 10 bps to 5.8% while cap rates for the latter experienced a 20 bps decline to 5.45%. While cap rates decreased, the supply of QSR properties increased by about 26% year over year.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.

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