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dizposition

Sell your coffee shop

Drive-thru coffee pads, corporate and franchised, ground-leased or fee simple. Underwritten on the queue and the morning commute.

Coffee Shop at a glance

Typical deal size
$1M – $4M
Lease structure
Absolute NNN or NN, or ground lease
Typical term
10–15 years
Escalations
10% every 5 years
StarbucksDutch BrosDunkin'Scooter's Coffee7 BrewTim HortonsIndependent operators

Overview

What coffee shops are really worth

Our read

Drive-thru coffee has become one of the most active formats in small net lease. Brands have been shrinking their buildings, adding lanes, and putting new stores on pads that would once have gone to a burger chain. The result is a large number of new leases on small buildings, and a market that tends to price them on the brand rather than the site.

The site is what lasts. A coffee drive-thru does most of its business in a few morning hours, and it does that business on the side of the road commuters drive to work, with a queue long enough to hold the rush without blocking the street. A store that has those two things can outlast its tenant; a store without them struggles regardless of the logo.

The lease is the other half. Corporate leases, multi-unit franchisee leases, single-store operator leases, and ground leases all appear in the sector, and they carry different credit, different landlord obligations, and different outcomes at expiration. They should not be priced as if they were the same thing.

Valuation

How we underwrite it

The method

We underwrite the queue and the morning first. Stacking capacity, circulation, and whether the site is on the morning-commute side of the road determine throughput, and on a small pad they cannot be fixed with capital.

The lease comes next: the guarantor, the remaining term, whether it is absolute NNN, NN, or a ground lease, and what the landlord actually owns and maintains. Franchisee guaranties are read on the franchisee's own financials rather than discounted as a category.

The pad is underwritten on its own. Size, visibility, access, drive-thru zoning, and any center restrictions determine what another drive-thru user would pay if the coffee tenant left, which is the floor under the investment.

Sales reporting, where the lease requires it, is used directly. Rent coverage is the clearest indicator of whether a store renews, and it is worth more than any market-wide assumption about the brand.

What moves the number

  1. 01Drive-thru stacking capacity, since a line that spills into the street costs sales every morning and draws municipal attention
  2. 02Position on the morning-commute side of the road, with easy right-in and right-out access before work
  3. 03Tenant entity and guaranty — corporate, multi-unit franchisee, and single-unit operator leases are different credits under the same brand
  4. 04Lease structure, because ground leases, NN leases with landlord roof and structure, and absolute NNN leases carry different risk on a building this small
  5. 05Pad quality — size, visibility, and zoning that allows a drive-thru, which many jurisdictions now restrict
  6. 06Rent relative to what another drive-thru user would pay for the same pad

Capital markets today

10-yr Treasury
5.24%
4.12% a year ago
SOFR
3.87%
4.2% a year ago
30-yr mortgage
7.28%
6.3% a year ago
CRE loan delinquency
1.53%
1.57% a year ago
CRE prices, YoY
6.58%
-2.7% a year ago

Sources: FRED DGS10, 2026-10-01 · FRED SOFR, 2026-10-01 · FRED MORTGAGE30US, 2026-10-01 · FRED DRCRELEXFACBS, 2026-04-01 · FRED COMREPUSQ159N, 2026-01-01

Diligence

What a buyer actually looks at in a coffee shop

  1. Check 01

    Stacking count and site circulation

    Drive-thru coffee lives in the morning rush. How many cars the lane holds before blocking access or the street is a direct read on throughput, and an inadequate queue is a problem capital rarely fixes on a small pad.

  2. Check 02

    Lease guarantor and tenant entity

    Several brands in this sector grow through franchisees or operating partners. The guaranty behind the rent, not the brand on the cup, determines what the lease is worth.

  3. Check 03

    Lease type and landlord obligations

    Some coffee leases are true absolute NNN; others leave roof, structure, or parking with the landlord, and ground leases leave the building with the tenant. Each changes the risk and the reversion.

  4. Check 04

    Drive-thru zoning and any conditional approvals

    Many municipalities now restrict new drive-thrus. A site with an approved drive-thru is harder to replicate, but conditional approvals can carry operating limits worth reading.

  5. Check 05

    Reciprocal easements and center restrictions

    Outparcel coffee sites often depend on shared access, cross-parking, and use restrictions recorded against the shopping center. Those documents decide whether a replacement tenant is allowed.

  6. Check 06

    Store sales, where reported

    Rent coverage is the clearest predictor of renewal. Some leases require sales reporting, and when they do it is the most useful page in the file.

Backfill risk

What happens if the tenant leaves

The tenant-goes-dark scenario

A drive-thru coffee site is a small building on a good pad, and its backfill story is mostly the story of the pad. The newer formats — compact double drive-thru buildings with little or no seating — are close to purpose-built, but the thing they sit on is exactly what every quick-service user is looking for.

That demand is the strongest point in the owner's favor. A corner or corridor pad with an approved drive-thru, stacking room, and morning-side access is a short-supply asset in most suburban trade areas, because many jurisdictions have become reluctant to approve new drive-thrus. A coffee brand, a quick-service restaurant, or a pharmacy or bank looking for a drive lane will often want the site even if the building comes down.

The weaker point is the building. A small coffee box may not suit the next user's format, and a replacement tenant often wants either a rebuild or a significant remodel. On a ground lease that becomes the tenant's problem; on a fee simple NNN lease it is part of what the next landlord inherits.

The real risk is a site that was built for a format the market has moved past — a sit-down café pad with a single short drive lane, or one on the evening-commute side of a busy road. Those sites lose to newer stores nearby, and no amount of rent bump fixes the morning traffic pattern.

Why this matters to you

Every buyer prices the tenant-goes-dark scenario, whether or not they say so out loud. It is the largest hidden input into the cap rate you get offered.

Understanding it before you go to market is the difference between negotiating and being negotiated with.

Who sells to us

Situations we see most often

  • Developer who built a drive-thru for a coffee brand and wants to recycle capital into the next pad
  • Franchisee selling the real estate in a sale-leaseback to fund more units
  • Investor holding a corporate lease approaching its first option
  • Shopping center owner selling an outparcel separately from the center
  • Owner of a dark or converted coffee drive-thru looking for a next use

Buy box

What we buy

  1. 01Drive-thru coffee net lease, $1M to $4M
  2. 02Corporate, franchised, and ground lease structures
  3. 03Outparcels sold separately from shopping centers
  4. 04Sale-leasebacks for multi-unit coffee operators

Process

How selling to Dizposition works

The full process
  1. Day 0

    01

    Send us the property

    Address, asset type, and the lease if there is one. That is enough for us to start.

  2. 02

    We underwrite it

    Our underwriting runs the income against current market pricing and the cost of capital. No lowball anchor.

  3. 10 minutes

    03

    You get a firm offer

    In 10 minutes, with the math shown. You will know exactly how we got there.

  4. As fast as 30 days

    04

    Close on your timeline

    As fast as 30 days, or as slow as you need. We are the principal, so the date is yours.

FAQ

Selling a coffee shop

What matters most when you value a drive-thru coffee property?

The queue and the morning. How many cars the lane holds and whether the site sits on the side of the road people drive in the morning matter more than the building. A strong tenant on a site with a short queue on the wrong side of the road is still a weak site.

My coffee tenant is on a ground lease. Is that worth less than a building lease?

It is a different investment, not necessarily a lesser one. A ground lease leaves the building and its upkeep with the tenant and gives you the improvements, or a cleared pad, at the end. We price the land, the lease, and the reversion separately.

Is a franchisee-guaranteed coffee lease a problem?

Not if the franchisee is strong. Some multi-unit operators are well capitalized and carry many locations; others are one store. We read the financials rather than discount every franchised lease the same way.

The coffee shop on my outparcel closed. What can go there?

Usually a lot, if the drive-thru approval survives and the center's restrictions allow it. Quick-service restaurants and other drive-thru users actively look for these pads. Send us the recorded easements and restrictions and we will tell you who the realistic next tenant is.

How long does it take to sell a commercial property to Dizposition?

You get a firm written offer within 10 minutes of sending us the property. If you accept, you can close in as little as 30 days — most of that is title work and your own timeline. There is no listing period, no marketing, and no waiting on a buyer's financing contingency.

Can I sell my property as-is?

Yes. We are the buyer, so there is no lender requiring repairs and no inspection contingency to renegotiate against you. Deferred maintenance, a failing roof, an aging tank system — we price it into the offer rather than asking you to fix it first.

Can I sell with a tenant in place?

Yes, and in most cases a tenant makes the property more valuable to us, not less. We will ask for the lease, a rent roll, and any estoppel certificates. You do not need to deliver the property vacant.

What if my lease is short-term or about to expire?

Short remaining term is one of the main reasons owners come to us. A conventional buyer needs lease term to get financing, which is why short-dated assets sit on the market. We underwrite the real estate and the backfill prospects rather than the remaining term alone.

What if the property is vacant?

We buy vacant assets. Pricing shifts from an income approach to what the building and land are worth to the next user, which is a different calculation — but it is one we do routinely rather than one that disqualifies the property.

Do I need a broker to sell to you?

No. We buy directly, and there is no commission because there is nothing to market. If you already have a broker, we will pay them. Selling without one saves the commission, but you should understand you are also giving up price discovery — a broker's job is to find out whether someone will pay more than we will.

What documents do I need to get an offer?

The address and the lease are enough to start. To finalize, we will want the rent roll, the last two years of operating statements, the title commitment, any existing survey, and any environmental reports you already have. You do not need an appraisal or a broker package.

How do you determine your offer?

We underwrite in-place income against what the space would re-lease for, adjust for capital needs and any environmental tail, and apply a cap rate supported by comparable transactions. We show you the inputs. If you disagree with an assumption, we would rather argue about the assumption than about the number.

What are typical seller closing costs?

Title and escrow fees, any transfer or recording tax owed in your state, prorated property taxes, and payoff of any existing debt. Because we are the buyer, there is no commission and no marketing cost. Transfer tax varies significantly by state and is often the largest single line.

Will I owe capital gains tax when I sell?

Usually yes, on the gain above your adjusted basis, and depreciation recapture is taxed separately from appreciation. State treatment varies. This is a question for your CPA before you sign, not after — the structure of the sale can change the answer.

Can I do a 1031 exchange?

Yes. A 1031 exchange lets you defer federal capital gains by reinvesting in like-kind property, subject to a 45-day identification window and a 180-day closing window from the date you sell. You must have a qualified intermediary in place before closing — it cannot be arranged afterward. Most states conform to federal treatment, but a few do not.

Can I sell if I am behind on payments or facing foreclosure?

Yes, and speed is the reason to move early rather than late. We can close on a defined date, which is what a lender or a receiver generally needs to see. Send us the payoff figure and any notices you have received.

Can I sell a property I inherited or that is in probate?

Yes. Probate sales take longer because the court timeline governs, not ours, and multiple heirs need to agree on the price before anything can close. We are used to working around both. Inherited property also generally receives a stepped-up basis, which can change the tax math substantially.

What if there is environmental contamination?

Send it anyway. Environmental history is one of the most common reasons a conventional sale falls apart, and it is one of the reasons owners call us. We price the remediation and the residual liability into the offer rather than walking away at the Phase II.

Is there any cost or obligation to get an offer?

None. There is no fee, no listing agreement, and no obligation to accept. If our number does not work for you, you keep the underwriting we showed you and we part ways.

Markets

Top markets we buy coffee shops in

10-minute offer

Ready to sell your coffee shop?

Send us the property and the lease. You'll have a firm offer, with the math shown, in 10 minutes.