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 11:05 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
KKR founders Henry Kravis, George Roberts step down as co-CEOs
KKR founders Henry Kravis, George Roberts step down as co-CEOs
KKR founders Henry Kravis, George Roberts step down as co-CEOs
Real estate’s richest get richer on Forbes’ billionaire list
Real estate’s richest get richer on Forbes’ billionaire list
Real estate’s richest get richer on Forbes’ billionaire list
After Newmark partnership ends, Knight Frank inks deal with Cresa
After Newmark partnership ends, Knight Frank inks deal with Cresa
After Newmark partnership ends, Knight Frank inks deal with Cresa
The hotel recovery is far from complete
The hotel recovery is far from complete
The hotel recovery is far from complete
HFZ, partners put historic Detroit building on the market
HFZ, partners put historic Detroit building on the market
HFZ, partners put historic Detroit building on the market
These hotel markets have entered a depression
These hotel markets have entered a depression
These hotel markets have entered a depression
Cherre CEO L.D. Salmanson (Cherre/Facebook)
Real estate data firm Cherre raises $50M
Real estate data firm Cherre raises $50M
(Tropicana Las Vegas via Facebook, Bally's Corp)
Bally’s buys Las Vegas’ Tropicana casino for $150M
Bally’s buys Las Vegas’ Tropicana casino for $150M
arrow_forward_ios

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

Loading...