Traditionally, there has been a basic win/win dynamic in net lease agreements that exists between investors and tenants. Among the many benefits that accrue to both parties in a net-lease deal, the tenant enjoys long-term predictability in its real estate, while the investor/owner can rely on the attractiveness of a well-located property with great bones when the time comes to re-tenant the asset.

But today, those "great bones" are starting to rattle as new concepts invade the Quick Service Restaurant (QSR) space. The drivers of this change are twofold: the rise of cell phone apps and the hangover fear of human contact that arose during the pandemic. Both phenomena are changing customer expectations, and major brands such as Chick-fil-A, Taco Bell, Shake Shack and Burger King are responding to that need.

These brands are experimenting with such amenities as more drive-through and walk-up windows and more mobile pick-up stations–while cutting back on their in-store counter and seating space. But Chick-fil-A and Burger King are currently strategizing on what is likely the most radical idea–two story assets with dedicated drive-through access on the first floor and expanded kitchens above. By some estimates, the concept could reduce store size by as much as 60%.