Old Guard Tenants are Struggling. Opportunities are Coming.

May 14, 2025

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Welcome back to On The Ground by DealGround your bi-monthly digest on what’s really happening in CRE - powered by DealGround data insights. 

This isn’t recycled headlines or sugar-coated market takes. We break down what’s really happening in CRE, tenant news, market trends, and where the data points to new opportunities, so you don’t have too. 

Let’s get into it.

Closures Are Creating New Opportunities (2 min read): 

Jack in the Box is shutting down up to 200 stores. Rite Aid’s back in Chapter 11. Del Taco might be sold off at a $385M loss (ouch). 

QSRs, pharmacies, and big box operators are rethinking their real estate strategies, closing underperforming locations, and focusing on boosting sales for their best sites. Recently, Jack in the Box confirmed they’re closing 150-200 stores (7-9% of their total stores) starting this year and is considering selling the Del Taco brand. Rite Aid has also filed for Chapter 11 bankruptcy again. Never a dull moment in CRE. 

Del Taco’s same store sales dropped 3.6% in Q2 2025, contributing to Jack in the Box reporting an overall sales decline of 4.4% systemwide. The Golden Arches? They’re facing similar realities, posting its worst same-store sales drop since 2020.

Let’s be blunt: The old guard tenants are struggling. Many are stuck in outdated buildings with inferior site configurations. Single lane, short stacked drive-thrus, small parcels, and/or mid-block locations with no ability to reconfigure have limited upside. 

What You Need to Know

  • Jack in the Box is closing 150-200 stores. These are corporate and franchisee owned locations - expect significant closures in secondary markets.

  • Jack in the Box is hoping to sell 170 company-owned sites to franchisees. Most won’t want to own their real estate. That’s a pipeline of likely opportunities.

  • Del Taco is struggling. The company may be sold for $200M (a tiny haircut from the $585M acquisition in 2022). Where will landlords end up?

  • Rite Aid’s bankruptcy will certainly bring closures. It amplifies the Wallgreen’s fallout. Expect pharmacy sites to trade at a discount. Will you find the hidden gems?

  • Old leases = trapped value. Prime land encumbered with below market leases can now be repositioned with higher paying tenants.

  • These deals won’t be listed. Brokers with actionable data and real time market intelligence will win.

Enter DealGround

Here’s how smart brokers and investors use DealGround to stay ahead and win.

Target old QSR and pharmacy sites with strong fundamentals. Filter by location, lot size, lease terms, and tenant category.

Identify properties with below-market rents and passive ownership. Many will opt to sell rather than take on the headache of repositioning. How would you capitalize on these opportunities?

Start adding value. Knowing your market, where transactions are happening, along with key property details, is a must before you pick up the phone.

Bottom Line

Same-store sales are slowing. Site plan constraints are real. Legacy brands can't afford premium rents - creating opportunities for others.

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