What is a good NNN retail investment to protect against the “Amazon effect"?

The triple net investment space is changing with new challenges to retail store success. We’re seeing brick-and-mortar retail stores shift strategy or go out of business because customers can buy the same goods on Amazon. Retailers like Toys R Us, who were once a strong investment tenant, are now gone.

That’s why choosing the right real estate investment and tenant structure is more important than ever. The highest value investments today are retail properties located in heavily populated areas that have a diversity of tentants.

Population density matters.

The ideal population is around 75,000 people within a 5-mile radius. The population is calculated by traffic volume, measured in vehicles per day, commonly noted as VPD.

Multiple tenant diversity matters.

The most valuable properties have tenants that can withstand local and economic changes. Like other investment strategies, diversity is helpful to fortify a multi-tenant property for the long-term. We recommend tenants such as high-traffic services - think Nail Salon or Dentist - and a strong anchor like a grocery store.

Standalone quick service restaurants and pharmacies with strong credit ratings in populated areas are still highly valued, and therefore a great investment choice.