Throughout 2020 and the few years leading up to it, average closing cap rates for new Starbucks and Chipotle leases with 10 years of term were in the 5%-5.35% range. Within only 6-12 months, these compressed to 4.25%-4.75%, depending on lease type and location, for an overall drop of up to 75 basis points. Not only have cap rates compressed significantly for the asset type, NNN-leased QSR’s as a whole are difficult to find for many 1031 investors, compressing cap rates further even for the smallest of franchisees. What does this mean for buyers in continued competition for quality (and even lesser quality) QSR deals? Owners of these properties should evaluate their portfolios and consider divesting of any non-core assets they may have previously thought about selling to take advantage of record high pricing.

 

If you have questions about buying or selling on a national basis, you can reach out to Kyle Hartung, Vice President and Director of Investment Sales at Goodman Real Estate Services Group, LLC.

 

It is no secret that the demand for online orders and third-party food delivery has been on the rise since the beginning of the pandemic. For many restaurants, this increase has been monumental in maintaining business over the past few years, but it has also created new challenges in ensuring a satisfying in-store experience for customers. Confronted with a challenging labor market, many restaurants are not running with a full staff. It is not uncommon to enter a restaurant with the hopes of a speedy transaction only to find long lines and overwhelmed employees due to an influx of online orders. Many major companies in the quick-service industry are taking different actions to adjust to the growth of virtual ordering. The following is one way that our client, Jersey Mike’s, is solving the in-store inconvenience for those who choose to order in-person.

 

WLZ Restaurant Group, LLC, a franchise operator for Jersey Mike’s Subs in northeast Ohio, is looking into plans to open strategically placed remote kitchens to keep online orders and in-store exchanges separate. With the customer in mind, these kitchens will be used solely to prepare the online orders and to provide a unique pick-up location for third-party food delivery drivers without disrupting the flow of in-store purchases. Jersey Mike’s aims to create a smoother experience in the restaurant as well as improve online order preparation, all while cutting labor cost and lessening the burden on employees and customers alike.

 

Michael Weiss, Senior Director at Goodman Real Estate Services Group LLC, and an eight-unit franchise owner, are working with Jersey Mike’s Subs on this project. 

 

 

 

 

 

 

Securing real estate for medical marijuana dispensaries is no easy feat. The expansion of the medical marijuana industry has rapidly increased the demand for cannabis commercial properties. For a site to be deemed suitable for marijuana retail, it must adhere to local zoning requirements, state laws, and federal laws. For example, Ohio state law does not allow any medical marijuana retail dispensary to be located within 500 feet of a school, church, public library, public playground, or public park. Due to such unique circumstances, the number of potential sites is very limited.

 

Cannabis companies have learned to move quickly to find locations in order to navigate this complex real estate process. Before owners can obtain a cannabis license, they must first acquire a property. Therefore, securing a purchase or lease agreement for a certain location is vital. Competition for sites has been so fierce that many companies even put down non-refundable deposits for a chance at acquiring a site. Certain landlords have deals with multiple dispensaries on the same location, providing the landlord with a substantial stream of income on a vacant space. Further, marijuana dispensaries are extremely profitable. According to Marijuana Business Daily’s 2021 Marijuana Business Factbook, data shows that the average marijuana dispensary makes $974 in revenue per square foot of space, making each site worth fighting for.

 

The State of Ohio has begun the process of awarding the next round of medical marijuana dispensaries. The winning bids are selected randomly through a lottery, and there will only be 73 new licenses granted throughout the entire State, adding to the existing 57 established locations.

 

 

 

 

 

Cleveland, Ohio - February 8th, 2022 - Goodman Real Estate Services Group and ChainLinks Retail Advisors are proud to announce that Goodman Real Estate Services Group is the new Northern Ohio partner of ChainLinks Retail Advisors, the nation’s leading retail-focused real estate services and commercial property brokerage organization. 

 

“ChainLinks has had a strong presence in Northern Ohio for many years. The opportunity to align with Goodman Real Estate Services Group (the premiere retail brokerage company in Northern Ohio) solidifies our presence in a key Midwest territory. We are very excited to have the unparalleled relationships and platform they will bring to the organization. Our ability to further extend the reach of our clients through Goodman Real Estate Services Group will exponentially leverage the strength and capacity of our team,” stated Geoffrey Mackler, Co-Chairman of the Board, ChainLinks Retail Advisors.

 

Since 1979, ChainLinks Retail Advisors has served America’s top retailers, landlords, and investors as the leading team of retail real estate service companies. ChainLinks provides superior connections and expertise to service clients, with over 750 brokers in the top 50 North American markets. Each company is independently owned and operated and is considered the best within their respective markets, especially by ChainLink’s rigorous standards. Combining the representation of the member offices, ChainLinks exclusively represents over 1,500 retailers and 4,000 properties consisting of over 300 million square feet of retail space.

 

Goodman Real Estate Services Group's exclusive contract to represent  Zeisler Morgan Properties Ltd.'s Ohio properties has been extended for a ninth year after completing eight deals at Ridge Park Square in the past year alone. The 2021 NEW deals at Ridge Park Square include Red Crab – Juicy Seafood, Pulp Smoothie (open), Hibbett's (opening soon), DTLR (open), Five Guys (under construction), Click It (open), Crumbl (under construction), and Firehouse Subs (under construction).  

 

Zack Sogoloff, Senior Vice President at Goodman Real Estate, and Seth Marks, Senior Associate at Goodman Real Estate, have served Zeisler Morgan as its exclusive listing agents on Ridge Park Square, Westwood Town Center, and French Creek Square for the past eight consecutive years. Their shared success only confirms our belief that strong communication builds relationships and leads to multiple transactions.

 

For more information on opportunities at Ridge Park Square, Westwood Town Center, or French Creek Square please contact Zack Sogoloff - This email address is being protected from spambots. You need JavaScript enabled to view it. or Seth Marks - This email address is being protected from spambots. You need JavaScript enabled to view it.