Property type
Coffee drive-thru properties have emerged as premium retail investments for 1031 exchange portfolios. These properties feature specialized buildings designed for drive-thru coffee service, housing popular coffee chains that serve millions of customers daily. In Austin, TX, coffee culture drives strong demand for these properties.
Coffee drive-thru properties typically command premium values due to their specialized design, prime locations, and strong tenant performance. Major coffee chains provide corporate-backed leases with reliable income streams suitable for 1031 exchange replacement properties.
Investment benefits
Market data
Typical Cap Rate
4.5% - 5.5%
Typical Lease Term
10-15 years
Common Tenants
Starbucks, Dutch Bros, Dunkin', Scooter's Coffee
Why are coffee drive-thru properties valuable for 1031 exchanges?
Coffee drive-thru properties are valuable because they occupy premium locations, serve high customer volumes, and house strong credit tenants. The daily coffee habit of millions of consumers provides consistent revenue for operators and stable rent income for investors.
What makes coffee properties different from other QSR investments?
Coffee properties often feature smaller footprints with specialized drive-thru designs optimized for quick service. They typically have higher sales per square foot than traditional QSR and benefit from strong brand loyalty among coffee consumers.
How has the coffee market performed for real estate investors?
The coffee market has provided strong returns for real estate investors as specialty coffee consumption continues growing. Major chains continue expanding, creating acquisition opportunities, while existing properties benefit from rent growth and appreciation.
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