In this pandemic, many companies are closing while essential businesses expand, which has left many triple-net lease investors wondering, about the best NNN investments. After scrambling to meet changed consumer demand and the new CDC guidelines, COVID-19 has changed business forever. However, in any kind of economy, net lease properties with high-credit NNN tenants offer a reliable income and conserve your capital. See below for some specific instances of known names and their expansion profiles this year to give you an understanding of national NNN tenant trends. Due to the ongoing uncertainty and consumer shifts to WFH, e-commerce, and in-home eating, avoid investing in NNN shopping centers, dine-in restaurants, gyms, and apparel
Grocery
Aldi: Multi-year plan calls for U.S. expansion to 2,300 stores by 2022; 67 locations listed as coming soon across 20 states. LIDL: 50 new stores to open in GA, MD, NC, NY, PA, VA in 2021. Wegmans: Opened 4 new locations in 2020, with 12 planned in MD, NC, VA. Whole Foods: At least 6 new locations opened in CA, FL, & DC, with more than 30 planned.
Discount
Dollar General: 486 new stores opened in 2020, plans still call for 900 by 2023. Plus 50 new locations in 2020-21, and a new concept for higher-dollar shoppers. Dollar Tree: In 2020,170 new Dollar Tree stores and 60 new Family Dollar locations opened; 2021 plans call for 400 plus openings, including 300 Dollar Tree stores and 200 Family Dollar stores. Five Below: growth now anticipated at 100 new stores for 2021-22.
Automotive
AutoZone: Opened 40 new U.S. locations in 2020; expansion to continue in 2021. Jiffy Lube: Expanded into MI in late 2020; 11 new locations opened are set to be built across 4 Midwest and 5 Southern states in 2021. Midas: Actively expanding in 23 states. Pep Boys: Opened 115 new locations in 2020, while targeting 200 new stores in 2021-22.
Quick Service/Fast Food Restaurant
BK: Net growth of 450 restaurants in the 2020, with growth plans for 100 plus in 2021-22; goal of 60,000 total locations in the next 15-20 years across all brands and with plans for smaller restaurants that include multiple drive-thrus. Chic-Fil-A: 25 new locations to open in FL, GA, IL, NY & WA by year-end 2021. DQ: Plans to open 15-25 new locations over the next 8-10 years; with plans to expand in the DC metro, opening 50 new restaurants. Chipotle: Plans are still on track to grow to 4,000+ units in the next 10 years; opened 42 new locations in 2020, with 26 locations including a multi-drive-thru. McDonalds: will right-size and close 400 locations in 2020, mostly within in-store big box locations.
Pharmacy & Medical
CVS: will expand its HealthHUBs concept in 2,500 locations by 2023. Walgreens: and partner VillageMD to open clinics in 800 stores in 40 U.S. markets in the next 8 years. Rite Aid: announced re-brand with plans to open 35 pilot stores and remodel 52 by the end of 2022. DaVita and Fresnius Dialysis units are expanding like wildfire, especially internationally. Aspen Dental, is another franchise tenant opportunity that is a solid investment. Shopko Optical will have opened 125 new units nationally in 2020-2022.
