Quick Service Restaurant Ground Rent Calculator

QSR ground leases price on site profitability, traffic count, and corporate guarantee.

Annual gross sales

Target occupancy %

Percentage rent %

Breakpoint multiple of base

Base ground rent

$224,000

Breakpoint sales

$3,733,333

Overage rent at current sales

How the math works

Base rent = sales × occupancy %. Breakpoint = (base / pct rate) × multiple.

$2.8M × 8% = $224k base. Breakpoint $224k/6% = $3.73M. Overage 0 at $2.8M sales.

How to Use

Enter store annual gross sales.
Enter target occupancy cost %.
Enter % percentage rent override.
Enter break-point multiple.
Read ground rent and breakpoint.

Frequently Asked Questions

QSR ground lease?

Ground lease: tenant builds, owns, and operates restaurant on landlord-owned land. Term: 15-25 year base + multiple 5-year options. Tenant pays ground rent + taxes + insurance + all operating costs (true triple-net). Typical for McDonald's, Chick-fil-A, Starbucks, Taco Bell, Raising Cane's, Chipotle, In-N-Out. Corporate-guaranteed leases: 1031 exchange-friendly, cap rates 4.5-6.5%. Franchisee-guaranteed: 5.5-7.5%.

Rent as % of sales?

QSR target occupancy cost: 6-10% of gross sales. Ground rent typically 7-9% of sales. Traditional QSR (McDonald's, BK): $70-150k ground rent. Premium QSR (Chick-fil-A, In-N-Out): $120-250k (higher sales, higher rent). Coffee/breakfast (Starbucks, Dunkin'): $80-160k. Traditional in strong markets: $150-350k ground rent for $3-5M AUV stores.

Percentage rent?

Many QSR leases include percentage rent clause: tenant pays base ground rent + X% of sales above breakpoint. Breakpoint = base rent / percentage rate. Example: $120k base / 6% = $2M natural breakpoint. $2.5M sales: $120k + ($500k × 6%) = $150k total. Percentage rent captures growth; base rent provides floor. Common in strong markets where landlord expects sales growth.

Site selection drivers?

Daily traffic count: 25k+ VPD minimum. Drive-thru: required for most QSR. Co-tenancy: shopping center synergy boosts sales 10-30%. Competition: 1 per 5-10k population typical. Egress: right-in/right-out minimum; signal-controlled access ideal. Visibility: pole sign, building signage. Site size: 0.7-1.5 acres. High-performing sites: $3-7M AUV; average $1.5-3M; struggling $1-1.5M. Site selection determines 60-80% of sales variance.