Dealerships need new ways to attract customers as people move away from traditional dealerships and toward direct sales like Tesla or car delivery services like Carvana. 
If that isn't possible, at least come up with new ways to earn money. Toyota of Walnut Creek in California is trying something new because it probably needs room for all of those new Lexus IS 500s that are for sale and partly because real estate prices are so high.
By 2026, the dealer is expected to be a 165,000-square-foot dealership and service center. On 7.5 acres of land, that will include 54 bays, eight for quick service, and 800 car parking spaces. That is only an upgrade to the dealership; Toyota of Walnut Creek is expanding.
There will be more than 400 rental housing units, recreational space, swimming pools, and other amenities above the dealership. It will be one of the most expensive auto dealership developments in the nation, costing $279 million. Price Simms Auto Group co-owner Adam Simms is leading the charge. According to Simms, who spoke with Automotive News, "We're going to continue to get more and more challenged at maintaining presences with these brands as real estate prices escalate." We have to start thinking multidimensionally instead of just horizontally, and that's what this project really represents."
Despite having one of the highest volumes in the United States, the dealership is one of the few that does not conform to the brand's current image. 10-15% of the dealership's gross profits would be lost if it were just renovated in its current location. The two, on the other hand, would subsidize each other if it added residential space. The deal has been presented to local officials, but the zoning, which was recently modified in Walnut Creek, still needs to be approved.
Stephen Scanlon, a partner with one of the project's developers, stated, "If you were to list all the wishes that the city had when they created the rezoning and put the vision behind the plan, we check all the boxes." That was the thing the city was always looking for, a way to propel [that area] forward. "And that thing will be Toyota of Walnut Creek."
The project leaders point out that bedrooms will be at least three floors away from the service area, in case you're concerned about noise. Is this going to be the exception or the rule for subsequent dealerships? We are aware that buyers are less likely to visit dealers these days, so it is essential to maximize profits. 
If dealers in high-priced locales like these (New York, Austin, etc.), more power to them for being able to stay afloat by going vertical and assisting the city with new residences.
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