Retail Investment Properties

IN THIS GUIDE

What are retail investment properties?

Retail investment properties consist of shopping centers, supermarkets, entertainment centers and other retail-based businesses.

Why Invest in Retail Commercial Real Estate?

Lower Maintenance: Investors in the retail sector have the benefit of passing expenses on to the tenant. Expenses such as utilities, a portion of maintenance, and other expenses that the owner and tenant agree upon.

Longer Leases: Investors benefit from tenants looking to establish themselves in a community. This leads to longer leases and lower tenant turnover rates. This decreases the investors risk significantly as cash flows levels will be consistent and vacancy rates will be low. Investors who manage to secure established brands as tenants can nearly guarantee a long-term lease.

Real Estate Investment Trusts (REITs): REITs make owning real estate accessible to the average investor. REITs are companies that focus on acquiring and managing real estate investment properties. Certain REITs focus on acquiring and managing retail properties. An investor can purchase retail-focused REITs shares in the stock market and become a partial owner. The shareholder will benefit from the property’s appreciation and rental income through the stock’s growth and dividends.

Examples of Retail REITs

National Retail Properties (NNN) is a REIT that invests in retail properties. The trust has established tenants such as 7-Eleven. The REIT offers a 3.90% dividend yield. The REITs portfolio consists of more than 3,100 properties.

Realty Income (O) is a REIT that invests in retail properties. The trust has established tenants such as Dollar General, Walgreens and 7-Eleven. The REIT offers a 3.74% dividend yield. The REITs portfolio consists of more than 6,400 properties.

Slate Retail REIT (SRRTF) is a REIT that invests in retail properties with a focus on grocery retail spaces. The REIT offers a 9.06% dividend yield. The REITs portfolio consists of more than 75 properties with a 93% occupancy rate.

Share on facebook
Share on twitter
Share on linkedin
Share on email

Start your loan application

Lender / Broker? Request a demo