Retail Investment Long Term

[Mark I Muhn]

I'm currently in the market for retail buildings with 10%+ cap rates with solid NNN leases with 5+ years remaining.

Is there a certain type of retail that is "recession proof" or is an extended corporate backed lease enough to mitigate any risk of down turn? 

It seems like fortune 500 companies like Walgreens, Rite Aide etc. seem to be less risk than say a small dental office. 

[Gaspare U.]

I didn't think it was possible to buy a strip in a populated urban area, where the tenant is well established, Internet/recession proof, NNN, long leases, below market rates per sq' at 10 CAP.

I will say this. I have a 3 store strip in N Jersey, and when a place is vacant it’s empty for a year. So make sure you have staying power. 

It's in the center of town. Flanked by two train stations, flanked by two schools (private and public) adjacent from a Chase and a Wendy's. Parking lot, NN, 5 year leases. I jumped on it at a 6 CAP during an 1031.