Starbucks’ own executive chairman, Howard Schultz has a few key insights on the state of retail properties. Schultz recently told Starbucks employees that “the retail sector was reaching a point where landlords of even prime centers would need to lower rents.” This doesn’t come as a shock to many as in the last two years more and more big time retailers have announced store closures due to bankruptcy filings.
Convenience stores are expected to be occupied by high-quality tenants this new year. Some of which have achieved cap rates between 4 and 5 percent in the fourth quarter of 2017. If you are a Net Lease Investor and are worried about the future of your convenience stores and their tenants, have no fear.