Skip to main content

Hungry for Casual Dining? Investors Are, Too!



Commercial real estate’s retail sector is continuing to attract the eyes of eager investors, and restaurants are at the top of their lists. However, it’s not the fancy 5-star kind of joint that’s receiving all the attention - it’s the opposite.

Casual eateries are taking over the contemporary dining scene and for good reason. This booming industry is reaping in profits, pleasing today’s consumers, and scoring massive points with investors.

If you’re craving quality food served in a comfortable and laid-back ambiance, you’re not alone. Let’s look at a few reasons why investors simply can’t resist these opportunities.

Investors Love the Perks of Net Leases

Being an investor can be tough. Managing various assets, finding your next deal, and expanding your portfolio isn’t easy work. These common investor pain-points create the perfect opportunity to work with casual dining - and more specifically, commercial real estate. The reason being is that net leases give investors all of what they love without the stress, time, and effort.

Net leases are a popular aspect of commercial real estate. Their terms call for much of the day-to-day upkeep to be handled by the occupant, not the property owner. On top of paying rent, tenants are responsible for covering the property’s expenses such as taxes, maintenance, operative fees, and more.

Net leases allow investors to take a hands-off approach to these assets, which eliminates much of the work and costs associated with growing portfolios.

Fast-Casual Food Industry On the Rise

Fast and casual food is the new ‘it’ item for consumers. This culinary niche is providing its customers exactly what they’re looking for. High quality, no fuss, quick service, and tons of options are just some of the features that attract hungry crowds to dine at these quintessential spots.

On top of their attractive qualities, fast and casual dining also has an edge over other restaurant options. The US population is seeing a large decline in home-cooking, and more and more meals are being eaten out. The U.S Bureau of Labor Statistics reported that the average American household spends about $3,008 per year on dining out. Another statistic shows that the amount of money spent on restaurants vs groceries has increased by 94% since 2003.

This consumer climate shows promising signs for the restaurant industry, and investors are seeing this, too. Fast-casual eateries have the upper-hand when catering to this crowd since they are an inexpensive, convenient, and fast alternative. Business is booming, and it doesn’t look like a decline is coming anytime soon.

Putting Up a Fight Against E-Commerce

‘Retail apocalypse’, who? More than anything, the current climate is full of changes — not doom. While e-commerce continues to gain popularity, there are some things that the internet simply cannot deliver. Necessity-based retail, such as casual dining, puts up a strong fight against their digital competition. Popular chain restaurants are coming out on top, and it’s giving investors a great vantage point within the United States’ market.

What do you think about this dining trend? Will it stick around? To keep up with the latest CRE news, check out our blog! 

Labels:
Location: New Castle, DE 19720, USA

Comments

Post a Comment

Popular posts from this blog

4 Senior Housing Trends That Will Continue to Change the Space in 2020

Senior housing developments have been a popular conversation within the commercial real estate business. As the life expectancy of seniors keeps getting older and older, the growing elderly population faced a serious housing crisis in 2019. The 80+ population skyrocketed before CRE could keep up. And when it finally did, there was a lot of work to do. In order to accommodate today’s aging population, senior housing developments were a serious need. Even though investor demand started off slow, the sudden boom motivated commercial real estate developers and investors to take action and begin making moves. With more CRE pros jumping on the senior housing market opportunities, the competition went from 0 to 100 in no time. As a result, an amenity-war has broken out - but it’s unlike anything you’ve ever seen before. Let’s look at these 4 senior housing trends that are redesigning the senior housing module in 2020 and beyond: In-House Medical Services Seniors ...
Post a Comment
Read more

NAI Emory Hill Sells Wilmington Shopping Center

  Wilmington, DE – NAI Emory Hill ( www.naiemoryhill.com ) is pleased to announce the sale of a 8,710 square foot shopping center located at 2308 Concord Pike in Wilmington, DE to The Wittig Family at DSM Commercial. Dave Morrison and Jim O’Hara Jr., of NAI Emory Hill, represented the purchaser and Seller in this transaction. This retail center is anchored by Mattress Firm, Green Drop and China Inn. The center is strategically located at the intersection of Sharpley Road and offers a great retail location along the busy Route 202 corridor. NAI Emory Hill is a completely full-service commercial and residential real estate firm serving Delaware and the surrounding counties of Maryland, New Jersey and Pennsylvania. Founded in 1981, we have the resources to design, build, finance, lease, sell, manage and maintain commercial and residential properties throughout the Mid-Atlantic . Learn more about our services at: www.propertymanagementdelaware.com www.emoryhillhomes.com
Post a Comment
Read more

Protecting NOI in the Senior Living Space

When observing the latest trends in senior living, don’t jump to any conclusions - make sure you’ve got the whole picture first. CRE’s senior living sector is facing low occupancy rates - but that doesn’t mean the industry isn’t standing strong. When it comes to NOI, occupancy isn’t everything. While a property’s occupancy rates can act as the main contributor to net operating income, there are other elements that help fuel profits for commercial real estate investors . So what’s going on in the senior living spaces that are sparking turbulence for commercial real estate? Here’s a breakdown: Construction is Booming For the last few years, senior living spaces have been undergoing a surge of construction. Unfortunately, this elongated period of growth has taken a major hit on occupancy rates. In the five years between 2014 and 2019, national occupancy rates for senior living facilities have dropped 2.5% . As reported by the National Investment Center for Senior H...
Post a Comment
Read more