QSR Sector Report
Investment volume and cap rates specific to the Quick Service Restaurants (QSR) sector have held steady relative to peer asset classes. While there was a slight uptick in average cap rates in the first quarter of 2024, this pales in comparison to other net lease sectors. The Federal Reserve is still aiming to taper inflation, and with Wall Street beginning to price in multiple cuts to interest rates in 2024, cap rates should follow suit and begin to decrease over time. QSR resiliency is due to the smaller price point of the transactions, the constant demand of their services, and the push into the QSR sector by investors. Cap rates and deal pricing will continue to vary depending on the specific asset and local market, making it critical to understand the underlying dynamics of QSR deals, regardless of size