Effect of electric cars on auto service NNN

[Nathan Lee]

We are looking at buying new national brand convenience (QT, Casey's, 7/11) and national auto service (Firestone, Midas, Discount Tire) with 15 year NNN leases.

The current model on convenience stores is a 10-15 minute customer visit and profit drivers inside (snacks, drinks).  It’s not the fuel mark-up.  As the world switches to electric vehicles, foot traffic would slow down.  Of course, a Casey’s can be made into a 1-2 hour charging station, but the customer will only buy so many snacks.   Other than profiting from electricity, what possibilities are there to justify a $4,000,000 building to a tenant?

Same is true of auto service centers.   Firestone would still sell tires, but oil changes, batteries, belts, and brakes are not used much on electric cars.   

Any thoughts?