When it comes to retail investments, the old saying about location goes by the boards. Yes, a good location is essential for traffic. But, as we've all learned—painfully—COVID-19 took care of retail traffic.
Well, not totally, and this is the key ingredient to the recipe for successful net-leased restaurant investment: Start with Quick Service Retail (QSR). But, not just QSR, but QSR with drive-through capabilities. Now add that great location—a major intown thoroughfare or corner spot. Finally, go for the investment basics: a long-term lease, a creditworthy tenant and strong cap-rate performance.
Drive-throughs are not always a welcome site, particularly in higher-tone communities, but they are essential for business survival. They would also seem vital to our personal survival as well, judging from the length of lines at the dinner bell. Drive-throughs have over the decades become one of the fabrics of our hectic lives, and during the pandemic, they offer among retailers a rare combination of sustenance and safety.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
