Property type
Drive-thru quick service restaurant (QSR) properties are premium investment assets for 1031 exchange investors. These properties feature established national restaurant brands with proven operating models and strong consumer demand. In Austin, TX, QSR properties benefit from the region's young, growing population and dynamic economy.
QSR properties with drive-thru capability command premium values due to convenience-oriented consumer preferences. These properties typically feature ground lease or NNN lease structures with corporate guarantees from major restaurant operators, providing reliable income for 1031 exchange replacement property needs.
Investment benefits
Market data
Typical Cap Rate
4.5% - 5.5%
Typical Lease Term
15-20 years
Common Tenants
McDonald's, Chick-fil-A, Taco Bell, Wendy's, Burger King
Why are drive-thru QSR properties popular for 1031 exchanges?
Drive-thru QSR properties are popular because they offer stable income from nationally recognized restaurant brands with strong credit. The drive-thru feature adds value by providing convenience that consumers increasingly demand, supporting consistent revenue for tenants and stable rent for investors.
What is the typical lease structure for QSR properties?
QSR properties typically feature absolute NNN or ground lease structures with 15-20 year initial terms and multiple renewal options. Many leases include corporate guarantees from major restaurant operators, providing strong credit backing for the lease obligations.
How do QSR cap rates compare to other retail property types?
QSR properties with strong credit tenants and long lease terms typically trade at cap rates of 4.5% to 5.5%, which is lower than many other retail property types. The lower cap rates reflect the premium investors place on credit quality and stability.
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