Automated Retail Kiosks Turn Dead Space Into New CRE Revenue Streams

Not Your Grandparents’ Vending Machine
CRE Market Beat Take
Automated retail kiosks offer owners a low-friction, no-capex way to monetize secondary spaces while adding 24/7 service, which can marginally support NOI in hospitality, retail and office assets.

Automated retail kiosks are reshaping how owners think about lobbies, corridors and other underutilized areas, turning what was once considered dead space into a small but steady income stream and a convenience for occupants. Alejandro Gonzalez, founder and CEO of Pharmabox and subsidiaries AmeriKiosk and SmartBox Retail, told Connect CRE that these units can be both a revenue generator and an added amenity for commercial properties.

Pharmabox launched in 2015 and has since rolled out branded automated retail machines in airports, malls and other high-traffic locations. Pharmabox units carry CVS-branded over-the-counter products in transit hubs, shopping centers, college campuses and hotels, targeting moments when traditional stores may be closed or out of reach. AmeriKiosk focuses on automated retail in places where full-scale brick-and-mortar shops are not practical, giving brands such as Pandora, Owala and Hasbro another channel to reach customers. SmartBox is designed to help big-box retailers address loss prevention around display cases.

Gonzalez said that many property decision-makers still equate automated retail with traditional vending machines, picturing basic black cabinets with metal coils. That perception extends to service quality, with memories of older machines that could sit out of order for long periods while technicians covered large routes. As a result, some owners worry more about tenant or guest complaints than potential revenue.

According to Gonzalez, newer automated retail systems are built and serviced differently. Units are designed to be more visually appealing, and operators like Pharmabox can dispatch technicians within hours when needed. He added that about 95% of issues can be resolved remotely, reducing downtime and operator visits.

On the income side, Gonzalez contrasted traditional vending, which he said might generate around $500 a month at a strong location, with the economics of newer automated retail programs. Property owners typically receive a 20% share of gross sales in his company’s model. For AmeriKiosk and Pharmabox placements, Gonzalez said properties do not invest capital; the operator covers installation, maintenance and eventual removal, and remits a revenue-share payment each month.

Automated retail operators, not landlords, also handle compliance obligations. Gonzalez cited responsibility for ADA and UL certifications, as well as food safety rules where applicable, including temperature-monitoring software and daily on-site cleaning. Staff undergo training and use software tools to make sure machines that handle food remain within regulatory guidelines.

The kiosks are generally plug-and-play, requiring roughly 18 to 20 square feet of floor space, a dedicated 15-amp, 110-volt electrical outlet and steady foot traffic. Beyond airports and office buildings, Gonzalez pointed to hotels, casinos, amusement parks, train stations, hospitals and malls as viable locations. In a hotel, for example, a Pharmabox machine can provide access to basic medications and personal-care items when the gift shop is closed.

Office buildings can deploy automated coffee units alongside Pharmabox machines, while airports that struggle to keep restaurants open late have used automated food concepts to maintain 24-hour availability. At travel plazas, AmeriKiosk and Areas USA have introduced an Oasis Express concept, rebranding a space with 12 machines, including hot food, operating around the clock.

Looking ahead, Gonzalez expects automated retail to expand further into residential properties such as apartment and condominium communities. His company has already developed a self-serve dog-washing machine for multifamily buildings that supplies soap, shampoo and a blower. He believes the automated retail sector is growing quickly and could become one of the country’s larger industries over the next five years.

Gonzalez is scheduled to deliver a keynote address titled “How Brands and Locations Win with Automated Retail” on December 15 at the Automated Retail & Kiosk Innovation Show, which runs December 14–16 in Miami Beach, FL.

Source:

Connect CRE
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