Order up: Real estate investors line up to buy drive-throughs

Restaurants with drive-through lanes are seeing an increase in business

National /
Mar.March 02, 2021 11:10 AM
(iStock/Illustration by Alexis Manrodt for The Real Deal)

(iStock/Illustration by Alexis Manrodt for The Real Deal)

Real estate investors are placing their bets on a new property type: drive-throughs.

Restaurants with drive-through lanes are seeing their values increase as the coronavirus pandemic forced social distancing rules and the closure of indoor dining, the Wall Street Journal reported. Chains such as Chick-fil-A and McDonald’s have reported an increase in sales thanks to their drive-through business.

Now, other fast-food spots are getting in the game: Shake Shack, which previously did not have any drive-through eateries, is adding the option to one of its locations in Orlando, Florida.

The increase in demand is driven, in part, by a lack of supply, according to the Journal. Some cities have placed limits on adding drive-through lanes at new projects because of concerns about traffic congestion and air pollution.

But a drive-through lane can increase the value of a property, adding anywhere from 10 to 20 percent to the rent, according to Derek Waltchack, a partner at the real estate firm Shannon Waltchack in Birmingham, Alabama.

Some restaurants with drive-through sites are planning to add lanes at future restaurants. Burger King plans to have triple drive-through lanes at its locations, with one lane reserved for customers who place orders online.

[WSJ] — Keith Larsen


Related Articles

arrow_forward_ios
Thor Equities Group Chairman Joseph J. Sitt. (Thor)
Thor facing foreclosure on Harlem rental building
Thor facing foreclosure on Harlem rental building
Photo illustration of Vornado CEO Steven Roth and Hotel Pennsylvania at 401 Seventh Avenue (Getty, iStock, Vornado)
“Inevitable”: Vornado will demolish Hotel Pennsylvania
“Inevitable”: Vornado will demolish Hotel Pennsylvania
The rate of loans sent to special servicers continued to fall in March. (Unsplash)
CMBS special servicing rate declines in March
CMBS special servicing rate declines in March
Sao Carlos CFO Fabio Itikawa. (Getty, YouTube via Levante Investimentos)
In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
Tesla’s Gigafactory (Tesla)
Over 340M sf of industrial space set for delivery in 2021
Over 340M sf of industrial space set for delivery in 2021
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
Dollar General thrives amid retail apocalypse
Dollar General thrives amid retail apocalypse
Bill Lee (Lee & Associates/YouTube)
Lee & Associates founder Bill Lee dies
Lee & Associates founder Bill Lee dies
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...