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Will ghost kitchens reshape retail strip centers?

On Behalf of | Sep 9, 2025 | Commercial Real Estate |

Ghost kitchens—delivery-only restaurants without a dining room—have grown quickly as food delivery becomes a normal part of daily life. Their rise sparks new questions for retail strip centers, many of which have struggled with vacancies in recent years. Could ghost kitchens provide a fresh way to fill empty space, attract steady foot traffic, and change how these centers operate?

A new type of tenant

Traditional strip centers often rely on small restaurants, salons, and service shops. Ghost kitchens change this model. They don’t need prime frontage or large dining areas. Instead, they look for affordable back-of-center units with strong utility connections and easy access for delivery drivers. This makes them a different kind of tenant—one focused on efficiency, technology, and digital reach rather than walk-in customers.

The impact on surrounding businesses

A strip center that adds ghost kitchens may see indirect benefits. Drivers picking up orders can increase activity in the area, which may lead to spillover sales for nearby convenience shops or coffee spots. Some landlords even design shared pick-up lobbies, where customers and drivers wait in a common area. This creates opportunities for other tenants to capture impulse purchases and build brand awareness.

Challenges to consider

Ghost kitchens are not without drawbacks. Parking congestion and constant delivery traffic can frustrate other tenants. Noise, odors, and waste management must also be addressed. Landlords who want to attract ghost kitchens should consider building infrastructure that supports them—such as dedicated delivery zones, upgraded ventilation systems, and flexible unit layouts that can adapt to multiple kitchen operators.

Retail strip centers must adapt to shifting consumer behavior. Ghost kitchens offer a model that fits current trends in dining and digital commerce, while giving landlords a chance to fill vacant spaces with a tenant type built for the delivery economy.