Eric P. Wohl
CA DRE License #01348614
Dairy Queen for Sale
Locating a single tenant Dairy Queen for sale is becoming increasingly competitive because they are among the most sought after NNN properties available today. Dairy Queen has locations in all major markets and are one of the most recognized quick service and soft serve restaurant chains in the world. The average purchase price for a single tenant Dairy Queen for sale is $750,000-$1,300,000, which is an extremely attractive price-point when looking at NNN properties for sale, as many investors can purchase these deals all cash.
Dairy Queen (NYSE: DQ), often abbreviated DQ, is a chain of soft serve and fast food restaurants owned by International Dairy Queen, Inc, who also owns Orange Julius and Karmelkorn. The name “Dairy Queen” is taken from the name of their soft serve product, which the company refers to as “Dairy Queen” or “DQ”. The first Dairy Queen store opened in 1940 in Joliet, Illinois. The company’s corporate offices are located in Edina, Minnesota. Dairy Queen has more than 5,700 stores in 19 countries, including 652 locations outside the United States and Canada. With Dairy Queen being one of the largest soft serve franchises in the world, their main competition includes: Baskin-Robbins, Ben & Jerry’s, Braum’s, Carvel, Culver’s, Foster’s Freeze, Good Times Burgers & Frozen Custard, McDonald’s, Sonic Drive-In, Tastee Freez, and TCBY. Dairy Queen, Inc. a wholly-owned subsidiary of Berkshire-Hathaway, Inc.
Dairy Queen Real Estate
The national average listing capitalization rate for a single tenant Dairy Queen for sale with a new 20 year lease is 6.75%-8.0%, depending on the property’s location and if there are rental increases in the lease. This average capitalization rate is on the higher end of NNN single tenant fast food restaurants on the market due to the fact that most Dairy Queens are operated by franchisees as opposed to corporately owned. NNN Dairy Queens for sale are in high demand these days due to the good cap rates, excellent Dairy Queen real estate, and the NNN nature of their leases.
The average lease term for a new Dairy Queen for sale is 10-20 years with an additional 15-20 years of options to renew. Most of the Dairy Queen leases have either annual increases or increases every 5 years and Dairy Queen for sale are one of the most secure investments available today. The average lot size for new Dairy Queen real estate ranges between 0.5 to 1.5 Acres, depending on the availability of land in a specific submarket.
If you are interested in purchasing or selling Dairy Queen real estate or any other net lease properties, please contact the President of HI NNN, Eric Wohl, at (949) 585-7673.
About HI NNN:
HIG NNN is a retail investment division of Hanley Investment Group Real Estate Advisors specializing in the sale and advisory of single-tenant retail net lease properties. With a track record exceeding one billion dollars, HIG NNN creates value for clients by providing highly specialized investment services to build and preserve wealth. HIG NNN is committed to delivering unparalleled service and results by utilizing property-specific marketing strategies and cutting-edge technology to insure the highest value is achieved. HIG NNN’s nationwide relationships with investors, developers, institutions, franchisees, brokers and 1031 exchange buyers are unparalleled in the industry, translating to maximum exposure and pricing for each property marketed and sold. With unmatched service and experience, HIG NNN is a market leader in the disposition and acquisition of single tenant retail net leased investments across the country.