Wawa is beloved for its coffee and sandwiches, but the properties themselves are also popular among real estate investors given the brand’s cult-like following and the low-risk bets its stores pose.
While Wawa sites might be more resilient than most, the locations — which are owned by real estate developers and investors and not the Delaware County-based company — aren’t exempt from the turbulence of the current real estate market, fueled by higher interest rates and more cautious investors. Wawa properties that tend to get scooped up quickly are taking longer to sell than usual, and brokers say it could take some time to get back to normal.
Despite market conditions, Wawa’s remain safe bets for investors for several reasons, according to Patrick Nutt, executive vice president for SRS Real Estate Partners’ National Net Lease Group. The stores are built in prime real estate locations, often have 20-year leases and require minimal involvement from the property owners, which in turn allows for more geographic flexibility in ownership.
Wawa’s reputation also makes it a desirable property for potential buyers, said Nutt, who’s helped sell more than 100 Wawa properties in the 10 years he’s been working with Wawa’s preferred developers. The convenience store and gas station chain has a cult-like following among consumers and is one of the most highly sought-after retail net lease tenants for investors, on par with well-known national brands Chick-fil-A, McDonald’s and CVS.
“There’s a lot of private investors that have an affinity for the brand,” he said. “They know and love and patronize that brand as a consumer, and so having the ability to also own one as an investment vehicle is oftentimes very reassuring.”
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