Net Lease Investors Fill Up on C-stores and Gas Stations

Net Lease Investors Fill Up on C-stores and Gas Stations

(excerpt)

Net lease experts anticipate that demand for c-stores with gas stations will decrease when 100 percent bonus depreciation ends. However, no one expects the sector to suffer a big hit.

“Even before 100 percent bonus depreciation was put in place, these properties were still selling aggressively,” notes Spencer Henderson, a director in the San Francisco office of B+E Net Lease, a brokerage that specializes in net lease transaction and 1031 exchanges. The firm has tracked more than 290 gas station sales so far this year.

Even the threat of electric vehicles (EVs) has done little to dampen investor interest in c-stores that sell fuel, Wolfe says. “When we take these assets to market, we get multiple offers within days. Net lease buyers who are investing in c-stores that have a fuel component believe that the tenants will adapt and find a way to benefit from the proliferation of EVs and EV charging.”

Read Full Article on WealthManagement.com