restaurant real estate

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

rahill“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.

Sands Investment Group/Alex Wenzel Wins CoStar’s Q1 2023 Power Broker Quarterly Deals Award

Charlotte, NC – May 10, 2023| Sands Investment Group is proud to announce that Alex Wenzel has been recognized as the recipient of CoStar’s Q1 2023 Power Broker Quarterly Deal Award. This prestigious accolade showcases Alex’s exceptional expertise, dedication, and outstanding achievements in the real estate industry. With his commitment to excellence, market acumen, and client-focused approach, Alex continues to drive success for both Sands Investment Group, and its valued clients. Read more

Sands Investment Group/Wyatt Groseclose Wins CoStar’s Q1 2023 Power Broker Quarterly Deals Award

Atlanta, GA – May 17, 2023 | Sands Investment Group is proud to announce that Wyatt Groseclose has been recognized as the recipient of CoStar’s Q1 2023 Power Broker Quarterly Deal Award. This prestigious accolade showcases Wyatt’s exceptional expertise, dedication, and outstanding achievements in the real estate industry. With his commitment to excellence, market acumen, and client-focused approach, Wyatt continues to drive success for both Sands Investment Group, and its valued clients. Read more

unlock wealth

Unlocking the Power of 1031 Exchanges: Your Ultimate Guide to Tax Savings and Wealth Building

If you are in an exchange, or considering doing one, SIG has a proven track record for seamlessly assisting our clients with the process. Over 65% of our business involves working with 1031 exchange clients and we have yet to have a client of ours not satisfy their exchange. Because 1031 exchanges help investors to increase wealth, save on taxes with tax deferrals, and grow portfolios, they are incredibly popular. We’ve dedicated this week’s blog posts to our most “frequently asked questions” regarding 1031 exchanges.

  1. What is a 1031 exchange?
    A 1031 exchange is a tax-deferred exchange that allows investors to sell one investment property and use the proceeds to purchase another “like-kind” property, without paying capital gains taxes on the sale of the first property. It is named after section 1031 of the Internal Revenue Code (IRC).
  2. How does a 1031 exchange work?
    In a 1031 exchange, the proceeds from the sale of the original property are held by a qualified intermediary (QI) and used to purchase the replacement property. To qualify for tax deferral, the replacement property must be of like-kind and the transaction must meet certain timing and identification requirements.
  3. What is an example of how a 1031 exchange works?
    If an investor sold a commercial property for a $500,000 profit, and your capital gains tax rate is 20 percent, then that investor owes $100,000 on the sale of that property. However, if they choose to do a 1031 exchange, then that investor can just reinvest the $500,000 profit into another commercial property that costs the same or more than the one that just sold. That investor would then avoid paying taxes on it!
  4. Who is a qualified intermediary (QI)?
    QIs can be banks, trust companies, attorneys, accountants, or other independent third-party companies that meet the IRS requirements. When selecting a QI, it’s important to do your research and choose a reputable company with experience facilitating 1031 exchanges. It’s important to note that the role of the QI is strictly limited to facilitating the exchange, and does not include providing investment advice or guidance. Investors should consult with their own tax and financial advisors to determine if a 1031 exchange is appropriate for their specific circumstances, and to evaluate the potential tax and investment benefits and risks.
  5. What are the benefits of a 1031 exchange?
    The benefits of a 1031 exchange include tax deferral on the sale of investment property, the ability to reinvest the proceeds in another property, and the potential for increased cash flow and appreciation.
  6. What properties qualify for a 1031 exchange?
    Any investment property held for business or investment purposes can qualify for a 1031 exchange. Examples include rental properties, commercial properties, and land held for investment purposes.
  7. Can I do a 1031 exchange for a vacation home?
    No, a vacation home does not qualify for a 1031 exchange because it is not held for investment or business purposes.
  8. How long do I have to identify replacement property in a 1031 exchange?
    Taxpayers have 45 days from the date of the sale of the original property to identify potential replacement properties. There are specific rules regarding the identification process, such as the three-property rule and the 200% rule.
  9. Can I use a 1031 exchange for a rental property?
    Yes, rental properties can qualify for a 1031 exchange as long as they are held for investment purposes.
  10. What happens if I don’t reinvest all the proceeds from a 1031 exchange- can I do a partial 1031 exchange?
    It is possible to do a partial 1031 exchange by using some of the proceeds from the sale of the original property to purchase a replacement property, and paying taxes on the remaining proceeds.

At SIG, we understand that 1031 exchanges can be a powerful tool for investors looking to increase wealth and save on taxes. With over 65% of our business involving working with 1031 exchange clients, we have a proven track record of helping our clients seamlessly navigate the process. Whether you’re new to the world of 1031 exchanges or looking for expert guidance on a complex transaction, our team of qualified intermediaries is here to help. Contact us today to learn more about how we can help you achieve your investment goals through the power of 1031 exchanges.