CHICAGO—Competition from e-commerce has decimated portions of the retail market, and landlords now make it a point to sign leases with service-oriented businesses that can resist internet competition. Many net lease investors also increasingly prefer properties occupied by such ventures. One retail category that now looks especially promising is auto parts retail.

It's a $58 billion industry which has experienced steady growth over the past few years, usually in the single digits, according to a new study by Quantum Real Estate Advisors, a Chicago-based firm that specializes in investment sales brokerage. Online retail sales within the industry have become more important, totaling $8.89 billion in 2017, a 16% increase over 2016. But AutoZone, Advance Auto Parts and O'Reilly Auto Parts have strong leads in market share, and the high levels of competition make it difficult for new operators to succeed. And this type of property has an additional advantage.

“The value of a property as real estate has become much more important, and from a physical standpoint, there is a lot of residual value in auto retail,” Chad M. Firsel, president of Quantum, tells GlobeSt.com. That's because unlike, say, McDonald's outlets, which typically have very specific layouts, auto stores are simpler. Most are one-story rectangles with great visibility, a lot of parking spaces, big open windows in front and high ceilings. That makes these buildings very appealing to a wide array of users, and in an age when Amazon has taken market share from many retailers, investors want that security in case one of their tenants is forced to shut down.