Assessing e-commerce risk

[Nathan Lee]

Property in question:  15,000 SF strip center, which lies right next to the tire shop of a Walmart Supercenter built in 2006.  New Murphy Express gas/convenience on the same drive accessing the Walmart.   5 national tenants, 7 cap, $3.2 million.   Kansas City MSA.

Some projections are for 20 percent of all grocery transactions to be delivered by year 2025.   If this means the grocery traffic also decreases 20 percent, then does that make the strip center a weaker investment?

Thanks in advance.

[Greg Dickerson]

@Nathan Lee as long as you have recession proof destination tenants the traffic will not affect your business. Also Walmart will not be loosing any significant traffic in their stores anytime soon.