Drive Through Lane: Once Overlooked Now Seen Potential in Commercial Real Estate

Real estate investors are now keeping an eye on an often-overlooked type of commercial property, the drive-throughs. As the COVID-19 pandemic continues, restaurants and fast-food chains are getting more sales from the drive-through lanes as it is the perfect option to maintain social distancing while grabbing your go-to snacks.

What is a drive-through?

A drive-through is basically a facility where one can drive along and order food without leaving the car. The idea is to place your order in a toll booth-like window or counter and wait for your order while fastened on your seat belts.

While the fast-food industry has been in the market since the 1920s, the drive-through option only came around the 1950s, starting in California. Twenty years later, almost all major fast-food franchises have installed their drive-through windows, and it has become a regular part of food chains since then.

In 1948, the first In-N-Out Burger drive-through in California gave customers a lap mat or a special sheet of paper to cover their laps while eating inside the car. Soon, printed lap mats became a regular thing in all fast-food chains with drive-through options.

(Photo : Photo by Tim Boyle/Getty Images)

2021 Drive-Throughs

Over the years, the drive-through lanes have evolved from a single counter to two windows where you can separately place your order and another one to pay and receive your food.

In 2020, food businesses saw an increased value through their drive-through lanes, all thanks to the coronavirus pandemic. Since most indoor dinings are either restricted or only allowed limited capacities on top of strict social distancing protocol, restaurants maximized the drive-through lanes to continue to thrive in the business.

According to Wall Street Journal, at the pandemic height, two major foodchain players such as McDonald's and Chick-fil-A have reported an increased sales through their drive-through windows.

The drive-through has become a popular option during the pandemic as people can order food while observing social distancing inside their cars.

(Photo : Photo by Tim Boyle/Getty Images)

Because of this new phenomenon, even restaurants that never offered drive-through options are now opening their windows and lanes.

The perfect example would be Shake Shack Inc., which started building its first drive-through in Orlando this year. According to Shake Shack CEO Randy Garutii, since the New York-based company has experienced a significant low during the pandemic, they are now exploring new formats to boost sales, particularly in the suburbs. Garutti also confirmed that Shake Shack is looking into opening at least eight drive-throughs by the end of the year 2022.

Aside from an increase in revenue, experts believe that riding on the drive-through real estate trend also helps boost the commercial real estate's value.

According to Birmingham-based developer and property owner Dereck Waltchack, a drive-through lane increases a property's value with a total of ten to 20 percent rent hike.

To broaden his own commercial real estate portfolio, the Shannon Waltchack partner told The Wall Street Journal that they also added drive-through lanes on their business properties and have prepared a layout that includes one.