The convenience store / gas station sector has emerged as one of the more attractive, essential retail investment options within the net lease space. This is due to expansion of in-store offerings and because the convenience store business model exemplifies internet resistance.

These operators are uniquely situated, combining multiple essential, quick-service business lines within a one-stop shop location. If you think about what customers are buying at these stores, the argument could be made that owning a modern convenience store is comparable to owning a coffee shop, a quick-service restaurant, a grocer, and a gas station, all under one roof. This evolution is not a new phenomenon, but in these times of uncertainty convenience stores are proving their resiliency and adaptability as circumstances dictate, and as consumer preferences and trends evolve.

Consider the growing consumer demand for quality, quick, grab-and-go meals. Royal Farms is a mid-Atlantic convenience store chain with a following for its crispy fried chicken, flaky dinner rolls and breaded potato wedges known as "western fries." In 2019, Food & Wine named it "the best fast-food fried chicken a la gas station." During COVID, many consider drive-thrus to be even better than grab-and-go meals. Sheetz, a mid-Atlantic convenience store operator with 600 stores, offers drive-thru lanes at a number of their locations where customers can order from their made-to-order menu without even getting out of the car.