Investors bet on restaurants’ move to
delivery-only

BentallGreenOak also has plans to develop $50M warehouse in Georgia with Bridge Development Partners

TRD NATIONAL /
Jul.July 05, 2019 03:05 PM
Uber founder Travis Kalanick (Credit: Getty Images and iStock)

Uber founder Travis Kalanick (Credit: Getty Images and iStock)

Startups are trying out a new model for restaurants in the age of food delivery: shared kitchens in warehouse spaces with limited storefronts.

The move could solve a quandary that has long plagued the restaurant industry: profit margins for delivery are thin, and restaurant space comes at a premium. But scrapping space for dine-in eaters and instead focusing on delivery only would allow restaurants to save on rent and meet growing delivery app demand.

Some investors are already making bets on industrial spaces that will likely become desirable when more restaurants make the switch to delivery-only. CloudKitchens, a Los Angeles-based startup backed by Uber founder Travis Kalanick, acquired at least 10 properties in several major U.S. cities since early 2017. The venture received financing from Goldman Sachs, according to property records, the Wall Street Journal reported.

And as more consumers order groceries online, cold-storage space is becoming more desirable. CBRE estimates that in the next five years, the U.S. will need an additional 70 to 100 million square feet of refrigerator space. BentallGreenOak, a real estate investment advisor, already has several cold-storage facilities and plans to develop an additional $50 million refrigerated warehouse in Savannah, Georgia with Bridge Development Partners LLC. [WSJ] — Georgia Kromrei


Related Articles

arrow_forward_ios
Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut
An office built in a shipping container

A wave of venture capital is pouring into construction tech sector

A wave of venture capital is pouring into construction tech sector
The Next Generation of Offices Can Be Accessed Anywhere

The Next Generation of Offices Can Be Accessed Anywhere

The Next Generation of Offices Can Be Accessed Anywhere
Occupancy Sensors Can Serve as the Brains of an Office’s COVID-19 Response

Occupancy Sensors Can Serve as the Brains of an Office’s COVID-19 Response

Occupancy Sensors Can Serve as the Brains of an Office’s COVID-19 Response
Post-Pandemic Economic Development

Post-Pandemic Economic Development

Post-Pandemic Economic Development
What Building Owners Need to Know About COVID-19 and Air Filtration

What Building Owners Need to Know About COVID-19 and Air Filtration

What Building Owners Need to Know About COVID-19 and Air Filtration
Stuart Miller

The pandemic has brought a silver lining for Lennar

The pandemic has brought a silver lining for Lennar
Buyers of Distressed Debt Inject Flexibility Into Pandemic-Stricken Real Estate Markets

Buyers of Distressed Debt Inject Flexibility Into Pandemic-Stricken Real Estate Markets

Buyers of Distressed Debt Inject Flexibility Into Pandemic-Stricken Real Estate Markets
arrow_forward_ios

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

Loading...