Auto parts, repair, and care locations have seen investment volume decrease over the last 12 months, according to Avison Young’s Net Lease Group.
Cap rates have increased over the same period. Average cap rates over the trailing 12 months for single-tenant net lease property have been 6.28%. The automotive average cap rate in contrast was 6.23%, so a five-basis-point lower position.
Automotive has developed “strong immunity” to e-commerce disruption. Although it is responsive to business trends, many members of the public depend on car-based transportation. That includes repairs and oil changes that can’t be done virtually. Parts and maintenance products are available online but many people need assistance to identify exactly what they need, or they need something and can’t wait for the order and delivery process.
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