Dave & Buster’s NNN Property Lease: Pros, Cons, and History

Dave & Buster’s

Interested in selling your Dave & Buster’s NNN property or Dave & Buster’s ground lease property and wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Dave & Buster’s NNN property for sale or Dave & Buster’s ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the clarity needed to make informed decisions regarding the sale of your Dave & Buster’s NNN property or the inclusion of a Dave & Buster’s ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Dave & Buster’s properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of 2024, Dave & Buster’s operates approximately 220+ locations across the United States and Canada, with a growing international presence through licensed locations. The brand is primarily concentrated in major metropolitan areas and high-traffic retail and entertainment districts.

Revenue and income

Dave & Buster’s Entertainment, Inc. is a publicly traded company (NASDAQ: PLAY) and reports financials publicly.
In 2023, the company generated approximately $2.2+ billion in annual revenue. Revenue is driven by a combination of entertainment (games), food and beverage sales, and special events. Net income fluctuates year to year based on consumer spending and operating costs but remains supported by strong unit-level economics.

Future plans

Dave & Buster’s plans to continue measured growth and brand enhancement, including:

Opening new domestic locations in strong retail and mixed-use markets
Selective international expansion through licensing partnerships
Remodeling and upgrading existing stores
Investment in new games, immersive attractions, and digital engagement
Enhancements to food, beverage, and sports-viewing experiences

Corporate vs. franchise

Dave & Buster’s locations in the United States and Canada are almost entirely corporate-owned and operated.
International locations are typically developed through licensing or franchise-style agreements, allowing for global expansion while maintaining brand control.

Additional information – Dave & Buster’s Properties

Dave & Buster’s was founded in 1982 in Dallas, Texas by David Corriveau and James “Buster” Corley.
The brand pioneered the combination of dining, arcade gaming, and sports entertainment under one roof.
Dave & Buster’s venues are large-format, destination-oriented properties that cater to adults, families, and corporate events.
Dave & Buster’s Entertainment, Inc. is publicly traded and headquartered in Dallas, Texas.

Dave & Buster’s History

Dave & Buster’s was founded in 1982 by David Corriveau and James “Buster” Corley in Dallas, Texas, with the concept of combining a full-service restaurant, bar, and arcade games under one roof. The founders identified an opportunity to create a social entertainment venue aimed primarily at adults, blending dining, sports viewing, and interactive games.

Throughout the 1990s and 2000s, Dave & Buster’s expanded steadily across the United States, focusing on large-format, high-traffic locations in power centers and entertainment districts. The brand became known for its extensive game selection, full-service bars, and strong appeal for group events, parties, and corporate functions.

In 2014, Dave & Buster’s Entertainment, Inc. became a publicly traded company, providing capital to accelerate growth, remodel existing locations, and invest in new games and technology. The company continued to refine its food and beverage offerings and expand its sports-viewing experience.

Today, Dave & Buster’s is recognized as a leading eat-and-play entertainment brand, with a national footprint and growing international presence, known for its strong brand recognition, scalable operating model, and ability to attract repeat customers across multiple demographics.

Why Invest in Ground Lease and NNN Lease of Dave & Buster’s?

Investing in Dave & Buster’s ground lease and triple net (NNN) lease properties offers attractive investment characteristics due to the brand’s national scale, destination-oriented model, and long-term lease structures commonly used for entertainment real estate.

1) Dave & Buster’s NNN Property Investment: Stable income

Dave & Buster’s locations generate consistent traffic from games, food, beverages, and events. This diversified revenue stream supports reliable long-term rental income under ground lease and NNN lease structures.

2) Dave & Buster’s NNN Property Investment: Established tenant

Founded in 1982, Dave & Buster’s is a well-known, publicly traded company (NASDAQ: PLAY) with a long operating history and strong brand recognition, reducing tenant credit and vacancy risk for investors.

3) Dave & Buster’s NNN Property Investment: Low management responsibility

Under typical ground lease and NNN lease arrangements, Dave & Buster’s is responsible for taxes, insurance, maintenance, and operational expenses, allowing landlords to maintain a passive investment profile.

4) Dave & Buster’s NNN Property Investment: Favorable lease terms

Dave & Buster’s leases are often long-term, frequently including renewal options and contractual rent increases, which help provide predictable cash flow and reduced lease rollover risk.

5) Dave & Buster’s NNN Property Investment: Real estate value

Dave & Buster’s venues are generally located on large, high-visibility parcels within power centers, lifestyle centers, and mixed-use developments. These locations support long-term real estate value and potential redevelopment flexibility.

Pros and Cons of Dave & Buster’s NNN and Ground Lease Investment

Pros:

Stable rental income backed by a nationally recognized dining and entertainment brand.
Established tenant presence lowers vacancy risk compared to local or unproven operators.
Net lease structures typically reduce day-to-day management responsibilities for landlords.
Long initial lease terms with renewal options provide predictable, long-term cash flow.
High-traffic locations in strong retail corridors enhance long-term property value.

Cons:

Lease renewal risk exists at expiration, particularly if store performance declines.
Investment performance is dependent on Dave & Buster’s operational success and financial health.
Entertainment and dining concepts are sensitive to economic cycles and discretionary consumer spending.
Many leases are not absolute NNN, which may leave some structural or capital responsibilities with the landlord.
Specialized large-format buildings can be challenging to re-tenant if the tenant vacates.

As with any single-tenant real estate investment, careful due diligence on lease terms, tenant financials, location strength, and long-term market trends is essential. Consulting experienced real estate and financial professionals helps ensure the investment aligns with your goals and risk tolerance.

MarketWatch: Dave & Buster’s