QSR & Fast Food NNN
Quick-service restaurant properties leased to America's strongest food brands — ground leases and NNN deals with the tightest cap rates in retail.
Data as of Q3 2026 · Sources: CoStar, CBRE Research, Moody's Analytics
Key Metrics
Market Overview
QSR and fast food NNN properties are the blue chips of net lease investing.
McDonald's ground leases and Chick-fil-A properties regularly trade below 5.00% cap rates, reflecting investor confidence in these brands' operational dominance. The QSR sector benefits from America's $350B+ annual quick-service food spending, with drive-through-equipped locations commanding premium pricing post-COVID. These properties typically sit on high-visibility pads with excellent access, making them highly fungible — if one QSR tenant leaves, another wants the pad. Ground leases from corporate-operated McDonald's, Chick-fil-A, and Starbucks offer the lowest risk in NNN, with the landlord owning the dirt while the tenant owns (and maintains) the building. Franchise-operated locations carry more risk and trade 50–100 bps wider than corporate deals.
Top Tenants by Portfolio Size
Recent Market Deals
Market Outlook
QSR NNN is the most competitive sub-sector in net lease, with institutional buyers, REITs, and 1031 exchange capital all chasing the same assets. Cap rate compression continues — McDonald's ground leases have compressed 25+ bps over the past 18 months, now trading inside 4.50% in primary markets. The drive-through premium has become permanent post-COVID: QSR properties with drive-throughs trade 50–75 bps tighter than those without. Chick-fil-A continues to be the most sought-after QSR tenant, with new-build ground leases attracting multiple offers above asking price. For investors seeking yield in QSR, look at the Tier 2 brands (Wendy's, Taco Bell, Dunkin') which offer stronger cap rates (5.25–6.00%) with solid credit profiles. Franchise-operated locations offer 50–100 bps of additional yield for investors comfortable with single-unit operator risk.
Key Investor Tips
Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Statistics may be estimated from publicly available sources and should be verified with primary data providers before use in investment decisions. Tenant information is sourced from public filings and may not reflect current conditions. Past performance does not guarantee future results.