Why You Should Buy Restaurant Real Estate With SIG
The restaurant industry is a thriving and constantly evolving market. Digitalization has been a major driver of growth in the restaurant industry, with online food ordering and delivery platforms generating over $22 billion in revenue in the United States alone in 2020. According to the National Restaurant Association, sales are projected to reach $997 Billion by the end of 2023 and $1.2 Trillion by 2030. The projected growth in restaurant food sales provides valuable insights for stakeholders in the restaurant real estate industry, guiding their decision-making processes, investment strategies, and expectations for future market conditions.
Why You Should Lean On Us
“Restaurant operators face numerous challenges and are asked to wear too many hats when expanding or opening new locations. The economic factors of interest rates, labor, and the supply chain exert pressure on prime costs, demanding meticulous management. Moreover, operators must swiftly adapt to changing consumer trends, advancements in real estate, and evolving technologies, often requiring substantial capital investments”. – Rahill Lakhani
Access valuable data: We provide data and demographic information about the local restaurant market, helping you analyze business locations and identify your trade areas.
Connect with trusted professionals: We have a wide network and can refer you to top lawyers, architects, contractors, and other industry professionals you may need for buying land or property remodeling.
Stay compliant with regulations: Our specialized Restaurant team understands and can guide you through federal, state, and city real estate regulations, as well as health department requirements, ensuring you don’t miss any legalities.
Save time and effort: We do the heavy lifting of finding suitable restaurant spaces, saving you time and delivering the best prospects to you and your team.
Best First Steps When Investing in Restaurant Commercial Real Estate
Conduct Market Research: Before investing in real estate, especially in the restaurant industry, conduct thorough market research. Analyze the local market, including demographics, competition, and consumer preferences, to identify potential opportunities for success. Stay updated on industry trends and emerging technologies to explore areas for growth and innovation.
Consider Your Investment Goals and Risks: Consider your investment goals when investing in restaurants. Determine if you prefer long-term, steady income or higher-risk, high-return opportunities. Understanding your goals will inform your investment decisions and structure. Restaurant investments carry risks such as changing consumer trends and economic downturns. Be aware of these risks and have a contingency plan to mitigate potential losses.
Factors To Consider When Looking at Restaurant Commercial Real Estate
Size and Capacity: Choose a building size based on your business vision. Consider how the space will accommodate tables, customers, and operational needs. Plan for a suitable seating capacity, including a bar area and dining area if applicable. Allocate enough space in the kitchen for staff, ingredients, and necessary equipment. Detailed floor plans can help you visualize and optimize the property’s potential.
Foot Traffic and Visibility: Ensure your restaurant stands out to potential customers. Make sure the restaurant sign is clearly visible from the street or sidewalk. If your concept is more discreet, develop a strong strategy for attracting business through other means. Accessibility is also crucial, as easy parking and smooth entry and exit routes increase the likelihood of customer visits. Account for factors such as medians and roadways that may impact accessibility to your property.
Lease Agreements: Review lease agreements carefully when investing in restaurants. Pay attention to rent, lease term, renewal options, and important terms and conditions. Understanding the lease agreement ensures a fair deal and informed investment decisions. Consider the history of the space and previous occupants. Understand their duration and reasons for leaving. Multiple failed restaurants in the same location should prompt investigation into the underlying causes.
In conclusion, investing in restaurants can be a smart move for those looking to diversify their portfolio and capitalize on the industry’s growth potential. By researching the market, understanding your investment goals, and carefully evaluating potential opportunities, you can find the right restaurant investment for you. If you’re interested in investing in restaurants, Sands Investment Group (SIG) can help. Our extensive listings include a wide range of restaurant properties for sale, and our team of experienced professionals can help guide you through every step of the investment process.
A Special Forces Team for Restaurant Assets | Experienced Advisors—Proven Results
What separates SIG from our competition is sub – sector product type specialization, a shared company database, unified team approach, our core values, and a focus on giving back. We have divided our company into product type specialization and our advisors focus solely on each of the sub – sectors within the net lease arena. We have a team that specializes in Restaurant Real Estate. We work with operators around the country as an outsourced real estate firm to assist with their growth and expansion. We also work with single unit operators to publicly traded franchisors in advising financing options, site selections and construction management through our industry leading partnerships.
