Investment Activity in Automotive Net Lease Assets Speeds Up

Widespread investor interest

Both private capital and institutional capital are buying automotive net lease properties. For example, STORE Capital has expanded its investment in auto repair and maintenance over the past several years. As of December 31, 2021, the auto category ranked as the fourth largest source of the REIT’s base rent, representing 5.4 percent, up from 4.8 percent in 2019.

“Many net lease investors have larger portfolios, and they’re looking for properties that provide diversification,” says Camille Renshaw, CEO and co-founder of B+E Net Lease. “Automotive net lease is a great assets class for diversification. As we’ve seen in past recessions and also throughout COVID, these assets are largely recession-proof, so investors like to mix them with other asset types.”