National Net Lease FSR Market Analysis for 3Q 2023

By: Senior Managing Director Ryan Zink, MAI, and Analyst Tyler Gin, MBA, of Valbridge Property Advisors |  Tampa

The full-service restaurant (FSR) sector, with its wide range of chain and franchised restaurants offering table-waiting services, constitutes a significant chunk of the U.S. economy. As with the QSR industry, understanding the trends and dynamics of the FSR sector is invaluable for stakeholders in commercial real estate and property appraisal. The value propositions and evaluations of these commercial spaces are intimately tied to the performance of the underlying businesses – the restaurants themselves.

This detailed FSR Market Analysis for 3Q 2023 by Valbridge Property Advisors |  Tampa, leverages data from trusted sources such as Costar, The Boulder Group, FSR Magazine, Franchise Times, IBISWorld, and Valbridge’s proprietary database.

Highlights of the report include:

• Industry Overview: Despite the setbacks faced due to the Covid-19 pandemic, the full-service restaurant industry saw a revenue rebound in 2022 that exceeded pre-Covid levels. With a projected growth rate of 1.5% for 2023, and a 1.3% rate from 2023 to 2028, the sector seems to be on a slower recovery trajectory compared to its 2.5% growth rate from 2018 to 2023.
• Top 50 FSR Brands: As ranked by FSR Magazine, this list gives insights into the biggest and most influential brands in the sector. Brands like Olive Garden, Applebee’s, and Buffalo Wild Wings top the chart, influencing commercial property evaluations across multiple regions.
• Real Estate Overview: FSRs remain appealing real estate investments due to factors like favorable lease terms, the limited property management needed, and their resilience to economic fluctuations.
• Sales and Lease Metrics: A breakdown of average sales indications, building and land sizes, sale prices, and rent metrics provides a clearer picture for potential investors and stakeholders.

To gain a full understanding of the opportunities and dynamics in the evolving FSR landscape, download the full report here.

Valbridge Property Advisors | Orlando | Tampa | Jacksonville is a leading commercial real estate appraisal and consultancy firm. Our experienced MAI and State Certified General Real Estate Appraiser staff value properties across a diverse range of asset types.  Have questions about your commercial real estate? We’re here to help! Reach us toll-free at 844-822-7825 (extension 1) to learn more about our services.