Sell your drive-thru & casual dining building
Corporate or franchisee guaranteed, ground lease or fee simple, dark buildings on good corners. The lane is the asset.
Drive-Thru & Casual Dining Building at a glance
- Typical deal size
- $1M – $5M
- Lease structure
- Absolute NNN, or ground lease
- Typical term
- 15–20 years
- Escalations
- 5–10% every 5 years
Overview
What drive-thru & casual dining buildings are really worth
Our read
A drive-thru restaurant is priced like a lease and valued like a site. Those two facts pull in different directions, and most of the mispricing in this asset class comes from paying attention to only one of them.
With a corporate guarantee and fifteen years of term, the lease dominates and the asset trades like a bond. But leases end, brands consolidate, and franchisees fail — and when that happens the question becomes what the corner is worth. That is where the real answer lives: an approved drive-thru lane on a signalized hard corner is genuinely scarce, because municipalities across the country have spent the last decade making new lanes harder to permit.
The corollary is that not all drive-thru buildings are the same asset at all. A 2,400-square-foot pad with a double lane and good stacking is a different property from a 6,000-square-foot second-generation building whose original concept needed all that space. The first re-tenants readily. The second is a project.
Valuation
How we underwrite it
The method
We underwrite the guarantor and the dirt separately, then decide which one is carrying the value given remaining term.
On the lease side, that means identifying the actual guarantor entity and, for franchisees, how many units they operate. A forty-unit operator and a single-unit operator get different treatment. Where store-level sales are available, occupancy cost ratio is the best predictor of renewal — rent above roughly eight to ten percent of sales makes term less meaningful than it looks.
On the site side, we underwrite the corner: traffic count, signalization, curb cuts, and above all whether the drive-thru lane is entitled and whether the stacking depth actually supports volume. Insufficient stacking is a permanent cap on sales that cannot be fixed without regrading.
Dark buildings get real numbers rather than a token. The kitchen buildout is worth little to a non-food user, but the lane and the corner carry, and that is usually most of the value.
What moves the number
- 01Corporate versus franchisee guarantee, and for franchisees, how many units the operator runs
- 02Ground lease versus fee simple with building, which changes both the cap rate and the depreciation profile
- 03Drive-thru presence and stacking depth, which is now the single largest driver of a QSR's sales volume
- 04Store-level sales and the resulting occupancy cost ratio, where obtainable
- 05Real estate fundamentals underneath the lease — corner, signal, traffic count — because that is what the site is worth if the brand leaves
- 06Remaining term and option structure, since below roughly ten years the financing pool contracts
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 drive-thru & casual dining building
- Check 01
Guarantor entity and franchisee unit count
A 40-unit franchisee and a single-unit operator are very different credits, and both differ from a corporate guarantee. The brand on the building tells you none of this.
- Check 02
Drive-thru stacking and site circulation
Drive-thru now drives the majority of QSR volume. Insufficient stacking depth caps sales permanently and cannot be fixed without regrading the site.
- Check 03
Store-level sales and occupancy cost ratio
If rent exceeds roughly 8-10% of sales, renewal is at risk regardless of remaining term.
- Check 04
Grease interceptor and kitchen infrastructure
Food-service buildout is expensive and heavily regulated. A failing interceptor is both a capital cost and a compliance issue.
- Check 05
Ground lease terms, if applicable
Reversion timing, renewal rights, and what happens to the improvements at expiration change the asset entirely.
- Check 06
Remodel and image obligations under the franchise agreement
Brand-mandated remodels run into the hundreds of thousands and are frequently triggered by renewal or transfer.
Backfill risk
What happens if the tenant leaves
The tenant-goes-dark scenario
A drive-thru building is one of the more re-tenantable specialty boxes in retail, because the thing that makes it valuable is not the building — it is the site. A hard corner with a signal, a curb cut that works, and an approved drive-thru lane is a scarce combination, and municipalities have become markedly less willing to approve new drive-thrus.
That entitlement scarcity is the real asset. A dark Burger King on a good corner with an existing drive-thru will draw interest from other QSR operators, coffee concepts, and increasingly from pharmacy and banking users who want the lane. The kitchen buildout has value to a food user and near-zero value to anyone else, but the lane and the corner carry regardless.
Where these struggle is inline or in-line-adjacent locations without a drive-thru, and second-generation buildings whose original concept was highly specific. A former buffet with 6,000 square feet and no lane is a much harder box than a 2,400-square-foot pad with a double lane.
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
- Franchisee selling the real estate to fund additional unit development
- Operator exiting a brand after a remodel or image requirement they will not fund
- 1031 buyer now holding an asset with shortening term
- Brand closing or consolidating a market, leaving the building dark
- Owner of a converted building where the original concept failed
Buy box
What we buy
- 01Corporate and franchisee-guaranteed pads, $1M to $5M
- 02Ground leases and fee simple
- 03Dark and second-generation buildings
- 04Short remaining term considered
Process
How selling to Dizposition works
Day 0
01Send us the property
Address, asset type, and the lease if there is one. That is enough for us to start.
- 02
We underwrite it
Our underwriting runs the income against current market pricing and the cost of capital. No lowball anchor.
10 minutes
03You get a firm offer
In 10 minutes, with the math shown. You will know exactly how we got there.
As fast as 30 days
04Close 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 drive-thru & casual dining building
My tenant is a franchisee, not the corporate brand. How much does that matter?
It matters, and it depends on the franchisee. A multi-unit operator running forty locations is a genuine credit; a single-unit operator is a small business. We underwrite the operator's actual scale and performance rather than applying one franchisee discount to everything, which usually works in your favor.
The building is dark. Is it worth anything?
Often quite a lot, because the value is in the site rather than the building. An approved drive-thru lane on a signalized corner is difficult to replicate — most municipalities have gotten much harder about new lanes. We underwrite to the site and the re-tenanting prospects.
I own a ground lease, not the building. Can you still buy it?
Yes. Ground leases are common in this asset class. What we look at is reversion timing, renewal rights, and what happens to the improvements at expiration, since those change the economics substantially.
My franchise agreement requires a remodel next year. Does that kill the sale?
No, but tell us up front. Brand-mandated remodels are a known and quantifiable cost, and they are frequently triggered by a transfer. We would rather price it into the first number than discover it in diligence.
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.
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 drive-thru & casual dining buildings in
Where the inventory is
270,088 U.S. establishments · Limited-service restaurants
- 01Sell a drive-thru & casual dining building in California34,527
- 02Sell a drive-thru & casual dining building in Texas24,360
- 03Sell a drive-thru & casual dining building in New York17,791
- 04Sell a drive-thru & casual dining building in Florida15,969
- 05Sell a drive-thru & casual dining building in Illinois10,622
- 06Sell a drive-thru & casual dining building in Ohio10,404
- 07Sell a drive-thru & casual dining building in Pennsylvania9,802
- 08Sell a drive-thru & casual dining building in Georgia9,735
- 09Sell a drive-thru & casual dining building in North Carolina8,502
- 10Sell a drive-thru & casual dining building in Michigan7,923
Sources: U.S. Census Bureau, County Business Patterns, NAICS 722513, 2023
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10-minute offer
Ready to sell your drive-thru & casual dining building?
Send us the property and the lease. You'll have a firm offer, with the math shown, in 10 minutes.


