Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/853369
40 S C T / A U G U S T 2 0 1 7 by just one brand: Mister Car Wash. Though not widely known, Mister Car Wash is the largest car wash company in the country. Then, too, despite their tendency to load up on service providers and drugstores, not even big net-lease REITs can count on always being free from any exposure to Internet competition. To be sure, for now convenience stores, restaurants and especially car washes appear to operate well beyond the competitive range of Internet retail. But the speed of technological innovation and the unpredictability of consumer patterns being what they are, the future can never be perfectly ascertained. Grocery stores always looked like a safe bet, and, indeed, Kroger happens to be among Realty Income's top 20 tenants. And yet Amazon.com's purchase of Whole Foods suggests that the grocery industry could end up looking very different tomorrow from what it looks like today. In any event, net-lease REITs are doing their best to position portfolios for economic strength and for maximum immunity from the powers of e-commerce. But there are still no guarantees, and as has already been seen: Often when one sector sneezes, another sector catches cold. n of our profit-center real estate investment and management approach." Indeed, here was news that needed telling. "The mind-set in the past few months has changed with the concerns that have been plaguing the malls and shopping center REITs since late last year, and some of that anxiety has crept into triple-net," said REIT analyst Haendel St. Juste, a managing director at New York City–based Mizuho Securities. "The biggest chunk of assets in triple-net are retail- related, be it convenience stores, drugstores or restaurants." This isn't to say that Berkshire Hathaway's investment is necessarily an endorsement for the net-lease sector as a whole, St. Juste observes. "Store Capital's business model is slightly different," he said. "It doesn't buy the same type of drugstores and convenience stores that most triple-net companies do." Still, St. Juste says, the deal was a help to a beleaguered sector, because concerns about net-lease — and the resultant stock market reactions — have been overblown, though meanwhile those concerns have been abating. — SB net-lease Shopping Center Management n Leasing n Redevelopment Bruce Strumpf, Inc. 2120 Drew Street, Clearwater, FL 33765 727-449-2020 • Fax 727-449-2212 email: johnstoner@brucestrumpf.com www.brucestrumpf.com Jill Strumpf, CSM President John F. Stoner, CCIM Director of Leasing Individual Member MEMBER T u r n Y o u r P r o p e r t y O v e r T o T h e E x p e r t s S e r v i n g F l o r i d a f o r o v e r 3 5 y e a r s w i t h o v e r 3 . 8 m i l l i o n s q u a r e f e e t MEET US AT BOOTH #2448! ONLY 2 QUARTERS LEFT IN 2017! Call NOW to make an appointment to meet with Beth at the ICSC Florida Conference or visit her @ booth #1849 Beth Azor www.bethazor.com Tel: 954-615-0615 beth@azoradvisoryservices.com Are your leasing agents meeting their goals? If not, have Beth come in and jazz them up! Beth shares practical advice that she uses daily to fill her own shopping centers — she walks the walk!