The Five QSR STNL Tenants Landlords Want Most — and Why
Here’re the 5 brands to consider for your next STNL investment
Single-Tenant Net Lease (STNL) assets remain one of the most sought-after investments in commercial real estate, and is often considered the most liquid asset class of real estate. For landlords, the appeal is simple: predictable income, minimal management, and long-term stability. But not all STNL tenants are created equal.
Quick Service Restaurants (“QSRs”) also known as Fast Food is a large sector in the STNL market, but specific brands appeal to landlords for various reasons. Certain brands consistently command premium pricing, aggressive investor demand, and compressed cap rates, and thus increase the value of the property, even if they are paying a lower rent then the previous tenant (reach out and ask me how this is possible). Below are five QSR tenants landlords actively pursue—and the reasons they outperform the rest of the market.
McDonald’s
1. McDonald’s
The Gold Standard of QSRs
McDonald’s is often viewed as the “blue-chip stock” of QSRs.
Often considered a "blue-chip" tenant, McDonald's offers exceptional stability with an investment-grade credit rating (S&P: A) and typically signs absolute NNN ground leases. Their recession-resistant model and high brand recognition make them a premium asset for landlords.
Why landlords want them:
* Strong corporate investment-grade credit rating (S&P: A) and global brand recognition
* High unit-level sales with data-driven site selection
* Long-term leases (Typically 20 years, with 4 – 5 year options) with rent escalations throughout
* Recession-resistant consumer demand
* They typically sign absolute NNN ground leases, with no, or very little landlord responsibilities.
McDonald locations are typically placed at signalized intersections with strong traffic counts, making the underlying real estate just as valuable as the tenant itself. Even in secondary markets, McDonalds drives premium exit pricing, with CAP rates often 50-100 basis points below other brands.
Chick-fil-A
2. Chick-fil-A
High Sales, Low Risk
Chick-fil-A has consistently ranked as the top performing QSR in store sales, year over year, and this is with being open only six days a week!
Why landlords want them:
* Industry-leading sales per location
* Conservative growth model focused on prime sites
* Long Term (Typically 20 years) Corporate-backed leases with strong guarantees
* Usually absolute NNN Ground Leases with no landlord responsibilities, preserving long-term land value while minimizing operational Risk.
* Exceptional brand loyalty and traffic generation
Due to the above reasons, Chick-fil-A typically trades at similar CAP rates as McDonalds.
Chipotle
3. Chipotle
An innovative approach to QSR/Fast-Casual Dining.
Why landlords want them:
* Large brand, with National Recognition
* Innovative design and food, merging high quality sustainably sourced ingredients with the speed of traditional Fast Food.
* Long-term leases (often 15–25 years)
* The “Chipotlane” an innovative and digital-first strategy, focusing on digital/mobile orders.
* Consistently strong unit level sales.
CAP Rates for Chipotle are typically a little higher than McDonald’s or Chick-fil-A offering investors higher income/cashflow, with many of the same benefits and security of the other leases.
Raising Cane’s
4. Raising Cane’s
Younger QSR model, with consistent quality and growth.
Raising Cane’s is a fast-food concept that focuses exclusively on chicken finger meals. In recent years, they have exploded in popularity, going viral on social media for their Cane Sauce. Raising Cane’s has more than 900 locations, and plans to grow to over 1,600. The chain is expanding rapidly across the U.S., often signing 15-20 year ground leases on new builds. Investors are very keen on Cane’s due to its high sales volumes and cult-like customer following.
Why landlords want them:
* Rapid expansion with disciplined site selection
* Consistently high store unit level sales (usually the second highest after Chick-fil-A).
* Long Term (15-20 year) Corporate-backed leases with predictable rent
* High Buyer Demand
* Operational Efficiency, by having a limited menu, there is less food waste.
For investors seeking yield with stability and potential appreciation, Raising Cane’s can deliver. Cap Rates are similar to Chipotle, being a little higher than McDonald’s and Chick-fil-A.
Dutch Bros
5. Dutch Bros
Coffee and Drinks for all ages.
Dutch Bros started in Oregon, and has rapidly expanded throughout the United States, with over 1,000 locations, and plans to grow to over 4,000.
Why investors/landlords want them:
* Drive-Thru focused model
* Strong site selection, often near high schools and other traffic generators
* Absolute NNN or Ground leases, with minimal or no landlord responsibilities.
* Corporate backed leases
Dutch Bros typically trade at slightly higher cap rates that often give investors higher yields.
Why These Tenants Command Premium Pricing
What unites these five tenants isn’t just brand strength—it’s risk mitigation. Investors pay more for assets that offer:
* Predictable cash flow
* Minimal landlord responsibilities
* Long-term lease security
* Strong resale liquidity
In STNL investing, reliability is king—and these tenants provide it.
Final Thoughts
For landlords and investors alike, STNL properties leased to top-tier tenants remain one of the most efficient ways to preserve capital while generating steady income. By repositioning assets with “in-demand” tenants a savvy landlord can create immediate appreciation for their property. Whether the goal is portfolio stability, passive ownership, or long-term appreciation, these five tenants consistently sit at the top of investor wish lists.
In a market where fundamentals matter more than ever, who you lease to can be just as important as where you buy. For more information, or assistance in locating your next STNL investment, please reach out to Commercial Brokers International at info@cbicommercial.com