August 15, 2024 – Austin, TX | In 2022, as the restrictions from COVID pandemic waned, investors acted with a renewed sense of energy and optimism. A flood of new capital hit the markets pushing cap rates down to historic lows for all types of credit. This unprecedented situation saw bidding wars within hours of a property hitting the market, giving sellers a unique opportunity to maximize the value of their Quick Service Restaurant (QSR) properties. However, this ideal phase for sellers was short-lived. In 2023, stronger credit and corporate QSR brands achieved higher values, driving cap rates up for franchise credit deals. Combined with rising interest rates, this created the current market conditions. Overall sales volumes declined after peaking in 2022, and the sale-to-asking price gap widened as buyers’ and sellers’ expectations remained fixed. Read more →