Dairy Queen Tenant Overview

Net Lease Advisor Tenant Dairy Queen


  • NNN leases
  • Proximity to hospitals and medical offices


  • Some NN leases holds landlord responsible for roof and structure
  • Expensive to re-lease should the tenant leave
  • Franchisee Operators

Tenant Description

The Dairy Queen system is one of the largest fast food systems in the world, with more than 7,000 restaurants in the United States, Canada, and more than 24 other countries.

There is great demand for their free-standing stores as net lease investments. Dairy Queen has locations in all major markets and are one of the most recognized QSR chains in the world. The leases Dairy Queen tends to sign relieve the owner of any landlord responsibilities and provide for rental increases during the primary term. Dairy Queens are operated by franchisees as opposed to corporately owned.

Dairy Queen dates back to John F. MCullough, his son Bradley and their soft-serve ice cream formula in 1938. They opened an ice cream store with a friend and customer, Sherb Noble, in Kankakee, Ill., and then their first Dairy Queen in Joliet, Ill., in 1940.

Back then, food franchising was all but unheard of, but the new product's potential made it a natural for such a system. When the United States entered World War II in December 1941, there were fewer than 10 Dairy Queen stores. However, shortly after the war, the system took off at a pace virtually unrivaled before or since. With only 100 stores in 1947, it grew to 1,446 in 1950 and then to 2,600 in 1955.

Today, Dairy Queen is a staple and leader of the QSR industry. American Dairy Queen Corporation is a subsidiary of Berkshire Hathaway, Inc.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $1,757,377
NOI $103,878
$/Square Foot $596
Building SF 2,950
Lot Size 0.5 - 1.5 Acres
Lease Term 20 Years
Escalations 1.5-2% Annually or 8-10% Every 5 Years
Stock Symbol BRK.A
Credit Rating
Moody's Aa2
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Vancouver,WA 5.51%
Russellville, AR 6.00%
Carlisle, OH 6.52%