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Retail Bright Spots Exist for Savvy Net Lease Investors

GlobeSt.com

Don’t believe everything you read. If you do, you’re likely to make the assumption that all of retail is a vast wasteland, that bankruptcies and defaults…

Don’t believe everything you read. If you do, you’re likely to make the assumption that all of retail is a vast wasteland, that bankruptcies and defaults are the only order of the day and all a formerly vibrant shopping center is good for now is conversation to a fitness center.

Readers of this blog know better. As do readers of GlobeSt.com. In two recent articles, GlobeSt made it clear that retail investments (and for our purposes, net lease investment) can be a profitable thing. It’s really a matter of where you look.

First, know what you’re buying. As reporter Les Shaver revealed, Starbucks, for instance, is not only opening new stores (a whopping 22,000 in the next 10 years) but it is also experimenting with new formats, such as curbside pick-up, an obvious nod to the current social distancing necessity.

Convenience and dollar store categories have always ranked consistently strong in the Avison Young Cap Rate Report. (In the third quarter, the sectors posted cap rates of 5.68 percent and 6.93 percent respectively.)

The GlobeSt article bears this out, pointing to 7-Eleven, which is planning more than 6,000 new openings, and Dollar General, with 1,000 in the works. This is clearly more than simply whistling in the dark or hoping for a brighter tomorrow. The company earlier this year opened 500 new stores, a clear proof of market confidence. Dollar Tree is also in the midst of cutting ribbons on 500 new stores.

Read the full article here

Amanda WillisRetail Bright Spots Exist for Savvy Net Lease Investors

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