Investor · Middle USA · Member since 2015 · 4 posts · 0 votes
We are looking at buying new national brand convenience (QT, Casey's, 7/11) and national auto service (Firestone, Midas, Discount Tire) with 15 year NNN leases.
The current model on convenience stores is a 10-15 minute customer visit and profit drivers inside (snacks, drinks). It’s not the fuel mark-up. As the world switches to electric vehicles, foot traffic would slow down. Of course, a Casey’s can be made into a 1-2 hour charging station, but the customer will only buy so many snacks. Other than profiting from electricity, what possibilities are there to justify a $4,000,000 building to a tenant?
Same is true of auto service centers. Firestone would still sell tires, but oil changes, batteries, belts, and brakes are not used much on electric cars.