The automotive net lease market is not slowing down. Retail tenants that include an auto related use are much more resistant to e-commerce, essentially recession proof, and are considered to be very stable and secure users of retail space. With close to 282 million cars on the road in the United States, car services and auto part businesses are essential to consumers.
“On average, American’s drive 12,000 miles each year and spend 1.5 percent of their household income on car repairs for two vehicles. By 2024, the auto care industry is expected to grow nearly 25 percent and reach $477.6 billion, according to Auto Care Association.” Stores such as O’Reilly Auto Parts, AutoZone and NAPA are a few of the most popular automotive tenants.
The high demand for cars, increased cost to purchase, and low supply, has led consumers to hold onto their cars longer than ever before. Because of this, they are spending more on auto services and parts to keep them in good condition. Investor interest in these types of companies is also increasing, with auto stores becoming even more popular then QSR’s, Dollar Stores and Drugstores.
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