Legacy Tenant Shakeups and the Unlocking of Upside—Finding Opportunity

‍

Legacy Tenant Shakeups and the Unlocking of Upside—Finding Opportunity

The recent closure announcements by Jack in the Box and Rite Aid signal a continued reshaping of the tenant landscape. For brokers and investors, this is an amazing opportunity to uncover and create value on a large scale by repositioning these assets with significantly better tenants at much higher rents.

Across QSR, pharmacy, big box, and shop tenant brands, tenants are reassessing their real estate needs through shuttering underperforming stores and focusing on growing sales in their best locations. In recent weeks, Jack in the Box has confirmed 150–200 store closures (equaling 7% - 9% of total stores) commencing this year, is considering selling the Del Taco brand, and Rite Aid is back in Chapter 11 bankruptcy. Never a dull moment.

Del Taco’s Q2 2025 same-store sales decline of 3.6% (as of April 13, 2025) has contributed to an overall sales decline of 4.4% for Jack in the Box and is clearly putting the company under enormous pressure to right the ship. McDonald’s recently reported a same-store sales decline of 3.6% in Q1 2025, their worst drop since 2020. The legacy brands’ sales are under threat from the newer, more agile crop of tenants and their rapid expansions into new markets. This trend will undoubtedly create real estate opportunities.

These changes aren’t isolated—they’re part of a broader trend that is creating opportunities across U.S. commercial real estate markets.

Recent Closures Are Unlocking High-Quality Sites

• As part of their JACK on Track initiative, Jack in the Box is reducing underperforming corporate locations across multiple states (150-200 store closures). How nice would it be to own ten Jack in the Box sites with 30+ year old leases in a major MSA? This should result in found money for many landlords.
• Jack in the Box has stated they will sell up to 170 company-owned real estate sites to franchisees. Many of these franchisees will not want to invest capital into owning their real estate which will open up investment opportunities to the broader marketplace.
• Del Taco, which Jack in the Box acquired in early 2022, may be divested entirely at a massive loss (JitB purchased Del Taco in 2022 for $585M, analysts estimate a sale will be valued at approximately $200M). You can rest assured that Del Taco store closures are coming soon. I know of a site in Orange County where Del Taco simply didn’t renew the lease several months ago. That site will soon be a Wendy’s and the new rent is barely over $200,000 / year. Del Taco should be able to easily pay $200,000 in rent for this site. It is not a good sign if Del Taco is walking away from an A site over not being able to pay $200,000 in rent.
• Rite Aid’s bankruptcy will lead to a significant number of store closures, compounding the problem set in motion from the Walgreens store closure announcement.

What This Means For Market Strategy

These shifts are creating opportunities for brokers, buyers, and developers. As legacy tenants work through their systematic store closures, new concepts will be able to expand into markets previously cost-prohibitive or into properties previously locked up by long-term leases. Many landlords will have opportunities dropped at their doorsteps, many will have to roll up their sleeves and work with brokers to cultivate strategies for a soft landing, and others will be hammered (mostly Rite Aid owners).

Sites vacated by mature operators can now be re-tenanted or repositioned with higher-performing brands. In many cases, this real estate will not be widely marketed as the brokers with the vision to swim a little further upstream will have the inside track.

This is where data matters. Understanding at what price and when these properties traded, along with the specifics of current lease information, all in a single dashboard, will provide the groundwork for much more elevated and valuable conversations with owners. Conversations with owners that are armed with detailed market knowledge and actionable advisory will lead to more opportunities. No more throwing spaghetti against the wall to see what sticks. Raise your hit ratio. Now is the time to pinpoint strategies and develop focused targeting.

DealGround gives professionals the ability to evaluate key property information and transaction history for every commercial property that has been on the market along with lease and rent data by tenant and trade area.

How To Capitalize On This Upheaval

• Target drive-thru properties that are candidates for closure by national operators which have prime locations and excellent visibility and access.
• Assess current values and lease structures to discover properties best suited to support higher rents and/or redevelopment. Target properties that will command a premium, even if vacant. These are higher probability sale candidates as most properties in this asset class are owned by passive investors. This profile owner will not want to endure the pain of repositioning but will still want to sell at a profit. Nobody wants to sell at a loss. Good luck fighting through that transaction with a reluctant and upset seller.
• Use information from more recent vintage leases of comparable properties along with knowledge of tenant trade area gaps and expansion requirements to confidently engage owners with relevant insight.
• Identify infill locations with aging QSR or pharmacy properties, especially where newer concepts are already gaining momentum nearby. This goes without saying but focusing on properties with below market rents should result in more profitable opportunities.

The key is to focus not just on who’s leaving—but on where the market is signaling emerging demand.

Make Data Your Advantage

With DealGround, users can:

• Access historical property information on every CRE property that has crossed your desk.
• Analyze current rents and lease terms, along with transaction information to make more rapid, informed decisions.

DealGround isn’t just a prospecting control center—it’s a full-market intelligence platform, purpose-built to surface opportunity in changing market conditions.

The Market Is Moving—Data Should Show You Where To Go Next

Retail real estate is transitioning—and the right intelligence will give you a strategic advantage.

‍DealGround equips you with the visibility and context to act confidently, uncover new opportunities, and stay ahead of the curve. Learn more today at DealGround.com