Net Lease Advisory Tenant IHOP


  • Leases call for increases, although amount and frequency vary
  • Generally decent sized parcel of land (prefer 0.8 to 1.5 acres)
  • Concept has been revitalized of late, creating a lot of new construction or complete remodels


  • Many sites are franchisee locations, with operator strength varying significantly
  • Restaurant industry has seen volatility in performance and sales lately

Tenant Description

IHOP, formerly known as The International House of Pancakes, is a United States based restaurant chain that specializes in breakfast foods.

The majority of IHOP restaurants are operated by franchisees requiring investors to look carefully at each locations sales and guarantors strength. There is great net lease appeal in the IHOP locations. The prototypical IHOP is a 4,500 square foot building on 1 acre of land. These locations can be easily converted into another casual dining location if IHOP were to vacate.

IHOP is franchised and operated by Glendale, California based International House of Pancakes, LLC and its affiliates. International House of Pancakes, LLC is a wholly-owned subsidiary of DineEquity, Inc. Over 99% of IHOP restaurants are run by independent franchisees. As of December 31, 2016, the chain has 1,723 franchised and 10 company operated restaurants.. While IHOP's focus is on breakfast foods such as pancakes, French toast and omelettes, it also offers a menu of lunch and dinner items.

On November 29, 2007, IHOP completed the acquisition of Applebee’s. At the time Applebee's had 1,943 restaurants worldwide at the time.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,352,325
NOI $141,845
$/Square Foot $475 - $600
Building SF 4,000 - 5,000
Lot Size 0.7 - 1.6 Acres
Lease Term 20 - 25 Years
Escalations Varies
Stock Symbol DIN
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Bethlehem, GA 6.00%
Greenville, NC 6.70%
Cincinnati, OH 5.95%