GRS | Title director, Allen Brown reports in from ICSC RECon:
“At the International Council of Shopping Centers’ major RECon 2016 show, the buzz in the net-lease retail sector is about expansion and growth.
Three restaurant franchisors/franchisees that I spoke with yesterday were talking about just that. Hooters continues to proceed with its re-imaging of corporate stores and a growth pattern that looks to bring eight-to-10 new stores on line in each of the next three years.
A Burger King franchisee spoke of the same thing – they are refreshing their older, existing stores, using landlord funds to help, and also rolling out two or three new stores each of the next four years, using capital provided by landlord financing through sale/leaseback transactions.
A Wendy’s franchisee echoed a growth initiative that will lead to an estimated two-to-three stores per year coming online in their territory, using their own capital to get started and sale/leaseback financing to get the jobs completed.
The sale/leaseback funds are largely coming from 1031 exchange funds. The overall tenor was of continued controlled growth in underserved markets, and refreshing brand images, to offer consumers a brighter and more vital feeling QSR and casual-dining experience.”