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Adapting C-Stores to Changing Consumer Preferences: A Smart Move for Investors

Convenience stores (c-stores) have long been appreciated for their accessibility and essential offerings. Yet today’s consumers expect more than just convenience—they’re looking for healthier options, digital conveniences, and environmentally responsible practices. This shift in consumer expectations opens new opportunities for investors who see the potential of evolving c-stores to attract a broader, more engaged customer base and remain relevant in a competitive market. Embracing these changes not only boosts profitability and property value but also positions investors at the forefront of an industry in transformation. Sands Investment Group (SIG) offers strategic guidance to help investors leverage these trends for growth and resilience.

Changing Consumer Expectations

The evolving c-store industry is responding to changing consumer values and lifestyles. Key transformations in the market include healthier food options, advanced technological integration, and sustainable initiatives that resonate with today’s customers.

Hot and Healthy Food Options
Today’s health-conscious shoppers want more than traditional convenience fare. Many c-stores now offer hot, freshly prepared meals that cater to diverse tastes, including items like grilled chicken sandwiches and customizable salads. These nutritious and appealing options position c-stores as convenient dining destinations, increasing per-visit spending. By transforming their food offerings, c-stores turn quick stops into opportunities for customers to spend more while enjoying a higher-quality experience.

Technology Enhancing Experience
Technology is revolutionizing the shopping journey in c-stores. Self-checkout kiosks, mobile ordering platforms, and contactless payment systems are no longer optional—they are essential. These features streamline operations and create frictionless experiences that encourage customers to explore additional products. Andrew Ackerman, Executive Managing Partner at SIG, explains: “The industry has consistently evolved—from full-service stations to self-service, from cash-only to digital payments, and now to cashierless convenience. Innovation drives profitability.” For investors, adopting such technology boosts customer satisfaction while enhancing operational efficiency, reducing costs, and increasing transaction volumes.

Sustainability and EV Infrastructure
Sustainability is a growing priority for consumers, and c-stores are adapting by integrating environmentally friendly features such as electric vehicle (EV) charging stations. These stations attract eco-conscious customers, open doors to new revenue streams, and position properties as future-ready. Investors who prioritize such sustainable practices can align their assets with both consumer values and emerging regulatory trends, ensuring competitive positioning in the marketplace.

The Investor Advantage: Driving Profitability and Stability

Investors in modernized c-stores stand to gain substantial benefits and by aligning with consumer preferences, these stores can significantly increase their profitability. Enhanced food offerings, for instance, not only attract a broader range of customers but also drive higher spending per visit. A customer stopping for fuel might now spend an additional $15 on freshly prepared meals, beverages, or other essentials—a marked improvement over traditional transaction volumes.

Profitability also plays a critical role in the overall stability of a c-store investment. Successful stores with robust revenue streams bolster the creditworthiness of their operators, paving the way for stronger lease agreements. John Brown, Investment Sales Advisor at SIG, highlights this shift: “C-Stores are now expanding… with larger stores, sometimes over 4,500 square feet, and full kitchens. The trend is moving toward high-margin food service, clean landscaping, and an overall consumer-friendly experience.” Properties that fail to adapt risk losing value and missing out on future growth.

Conclusion

The evolving c-store landscape offers unique opportunities for investors willing to adapt. By embracing consumer-driven trends such as health-focused offerings, advanced technology, and sustainability, c-stores can stand out in a competitive retail space, attract a loyal customer base, and increase property value. For investors, these adaptations not only drive higher profitability but also build resilience against market shifts.

At Sands Investment Group, we are dedicated to helping investors navigate these changes with precision and insight. Our experienced advisors offer in-depth market analysis to pinpoint the best opportunities and provide tailored strategies to align c-store investments with emerging trends. By guiding investors through strategic improvements—whether in technology or sustainable practices—we ensure that c-store properties remain relevant, profitable, and positioned for future growth. With SIG’s support, your investments in the c-store sector can capture today’s consumer demands and drive long-term success.

Contact our C-Store Team today to learn more about our services and how we can help you achieve your financial goals.

Trends in Casual Dining That Impact Real Estate Value

The casual dining sector is evolving rapidly due to changing consumer preferences and technological advancements. These shifts are going to start having an impact on property values, making it essential for commercial real estate investors to understand how these trends influence investment potential. By aligning investments with the current trends shaping the casual dining landscape, investors can ensure long-term value growth and portfolio resilience.

  1. Enhanced Customer Experiences and Property Value

Today’s diners seek more than just good food—they want memorable, immersive experiences. In response, casual dining establishments are investing in ambiance, expanding outdoor seating, and incorporating entertainment features. Properties that can accommodate these elements can help to increase the value, as they allow tenants to cater to the demand for experiential dining. For investors, choosing adaptable spaces that enhance customer experience can attract tenants who are willing to pay higher rents and sign longer leases. This ultimately boosts the property’s income potential and enhances overall asset value.

  1. Digital Integration as a Value Driver

The adoption of digital solutions such as online ordering, delivery, and contactless payments has become a standard in casual dining. Properties with robust digital infrastructure—like high-speed internet and dedicated pickup areas—are increasingly appealing to tenants who want to stay competitive in the digital age. Doug Roland, investment advisor at Sands Investment Group, notes that with the rise of platforms like Uber Eats and DoorDash, operators have been able to “utilize smaller square footage, less parking, and reduce labor costs. This setup makes for more stable tenants which ultimately reduces investor risk.” Working with SIG investment advisors allows investors to have access to key insights into which tenants and operators are taking advantage of technological advancements and which are not.

  1. Sustainability Enhances Appeal and Long-Term Value

Environmental consciousness is rising among both consumers and businesses. Casual dining establishments are thus seeking eco-friendly, energy-efficient properties. Buildings that offer sustainable features often command higher values because they align with tenants’ goals of reducing environmental impact and operational costs. Sustainable properties attract tenants willing to pay a premium for green features such as solar panels, gray water recycling, and LED lighting, which in turn strengthens tenant retention and supports long-term value growth. Investors who focus on sustainability not only meet current market demands but also mitigate potential risks associated with future environmental regulations, adding to their properties’ resilience.

  1. Multi-Use Spaces Increase Versatility and Value

Casual dining establishments are increasingly interested in spaces that can serve multiple purposes beyond dining, such as hosting events or providing co-working areas. Multi-use properties that offer this flexibility tend to have higher market values as they can cater to diverse tenant needs and adapt to shifting demands. For investors, this versatility translates into greater revenue potential, as such properties can attract a broader range of tenants looking for spaces that maximize both utility and adaptability.

  1. Prime Location and Accessibility as Core Value Indicators

Despite the rise of delivery services, location remains critical for casual dining success. Doug Roland emphasizes that “geography is very important, as properties in high-traffic areas with easy access to parking and public transit continue to attract a steady flow of customers”. For investors, focusing on properties in strategic locations helps maintain strong rental rates and consistent tenant demand. By choosing locations with prime accessibility, investors increase their chances for not only stable income but also long-term property appreciation.

  1. Menu Innovation and Its Influence on Property Value

Menu innovation is another trend influencing casual dining real estate. Diners today are more adventurous, favoring unique, high-quality, and often health-conscious options. Restaurants focused on menu innovation often require adaptable kitchen spaces that can accommodate evolving culinary trends and specialized equipment. Properties with flexible layouts or potential for kitchen expansion appeal to tenants who prioritize menu creativity as a way to differentiate themselves. Investors who recognize this trend can select properties that cater to forward-thinking tenants, enhancing both rental income and property value.

How SIG’s Investment Advisors Provide Value to Investors

Our investment advisors bring valuable insights to investors in casual dining real estate by aligning investment strategies with key market trends. Through expert analysis, we identify properties that are adaptable, digitally integrated, and sustainability-focused, ensuring these assets meet current tenant demands and support long-term growth. By leveraging their deep knowledge of prime locations and multi-use property potential, our investment advisors help investors make informed decisions that optimize property value, attract quality tenants, and enhance portfolio resilience. This strategic guidance positions investors to navigate a dynamic market effectively and secure sustainable returns.

Contact our restaurant team today to learn more about our services and how we can help you achieve your financial goals.

Revitalizing Retail: Innovative Strategies for Shopping Center Success

Revitalizing Retail: Innovative Strategies for Shopping Center Success

As the retail landscape continues to evolve, shopping centers must innovate to remain relevant and profitable. The rise of e-commerce presents significant challenges in that consumers have more variety and access to products than ever before, potentially making shopping centers redundant. However, with the right strategies, these challenges can be overcome and lead to growth and success. At SIG, we’ve guided numerous clients through these industry shifts, helping them to capitalize on emerging trends and ensuring their investments yield robust returns. The key to revitalizing retail lies in embracing innovative strategies that cater to contemporary consumer demands while optimizing for long-term financial performance. Read more

Quick-Service Restaurants: Serving Up Opportunity

August 15, 2024 – Austin, TX | In 2022, as the restrictions from COVID pandemic waned, investors acted with a renewed sense of energy and optimism. A flood of new capital hit the markets pushing cap rates down to historic lows for all types of credit. This unprecedented situation saw bidding wars within hours of a property hitting the market, giving sellers a unique opportunity to maximize the value of their Quick Service Restaurant (QSR) properties. However, this ideal phase for sellers was short-lived. In 2023, stronger credit and corporate QSR brands achieved higher values, driving cap rates up for franchise credit deals. Combined with rising interest rates, this created the current market conditions. Overall sales volumes declined after peaking in 2022, and the sale-to-asking price gap widened as buyers’ and sellers’ expectations remained fixed. Read more

The Current Effects of Inflation on the US Commercial Real Estate Market

Inflation continues to significantly impact the commercial real estate (CRE) market in the United States. It’s no surprise that high inflation rates coupled with increased interest rates has put consumer spending under pressure in recent months. Rising costs in goods, services, and gas has already had far reaching consequences in the CRE space. At SIG, our Investment Advisors are aware that as prices rise, while we may face challenges, significant opportunities continue to emerge for investors, developers, and tenants. We’re paying close attention to the impact of increased insurance costs in the United States and the effects of rising inflation on the market.

Inflation’s Impact on CRE

Rising Construction Costs: One immediate effect of inflation on the CRE market is increased construction costs. With construction costs expected to rise by as much as 6% this year, prices for raw materials like steel, lumber, and concrete are soaring, raising the cost of new development projects. This can delay or halt new construction, tightening the supply of commercial properties and driving up rental rates for existing properties. For example, in the industrial sector, average net rents are projected to increase at a pace of 5% over the next three years.

Higher Operating Expenses: Inflation also affects day-to-day operating expenses, including utilities, maintenance, and labor costs. Property owners may pass these costs along to tenants through higher rents or operating expense pass-throughs, impacting tenant retention and leasing activity. Proper underwriting and market knowledge is where brokers like SIG can add value to help investors see around the corner. If you know what can happen, you can prepare for it.

Interest Rates and Financing: As inflationary pressures mount, “the Federal Reserve’s decision to maintain the target interest rate at 5.25%-5.50% reflects a cautious strategy in the face of inflation”, reports The Global Treasurer. With current interest rates potentially near their peak, investors are anxious for a rate cut. High interest rates have large impacts on new acquisitions and refinancing of existing properties, slowing down transaction volumes in the CRE market.

Opportunities Amidst Inflation

Despite these challenges, there are opportunities for savvy investors:

Adaptive Reuse Projects: With new construction costs rising, adaptive reuse of existing buildings can be a cost-effective alternative. Converting underutilized or obsolete properties into new uses can provide investment opportunities while mitigating high construction costs.

Strategic Investments: Investors can take advantage of inflation by focusing on resilient property types and locations. For instance, industrial properties, in high demand due to the growth of e-commerce, may offer more stable returns compared to other sectors. Our team of Investment Advisors are experts in assisting investors make strategic investment decisions that will maximize the performance of their portfolios.

Value Retention in Hard Assets: Commercial real estate tends to retain value better than some other investment types during inflationary periods. Investors seeking to hedge against inflation might find CRE attractive, as it provides income through rental payments over a longer term period, and has a stronger chance of potential appreciation in property value.

Rising Insurance Costs

The country is facing unique challenges regarding inflation, particularly in insurance costs. The impact of climate change has made multiple regions prone to natural disasters such as hurricanes, floods and tornadoes which is significantly impacting insurance premiums.  According to the credit rating firm, AM Best Co. Inc, commercial real estate insurance costs skyrocketed to nearly five times the national pace. Inflation exacerbates this issue in several ways:

Specifically, investors in the Southeastern USA, or those looking to invest in the region, need to be aware that rising insurance costs exacerbates the issue of inflation because of the rise in hurricanes and floods. Inflation increases costs of materials and labor, thus the cost of repairs to damaged properties rise. High risk areas carry higher insurance premiums which drive up operating costs and impact bottom line profitability.

As advisors, we understand that rising insurance costs can influence investment decisions, as higher operating expenses may affect the attractiveness of certain properties or markets. Investors might seek regions with lower insurance costs or properties with robust mitigation measures to reduce risk and control expenses. Our wide range of inventory allows our expert Investment Advisors to recommend assets that fit your risk profile and investment goals.

While rising costs and interest rates pose challenges, strategic investment, and adaptive management can help mitigate these impacts. In the disaster prone regions, the added dimension of escalating insurance costs requires careful consideration and proactive risk management.

At SIG, our Investment Advisors are well-versed in navigating the complexities of the current inflationary environment, providing insights and strategies to help our clients make informed decisions and capitalize on opportunities in the commercial real estate market. By understanding the nuanced effects of inflation and employing targeted investment strategies, SIG remains committed to delivering value and stability to our clients amidst the evolving economic landscape.

 

CRE & Technology: The Impact is Not What You Expected

There is no doubt that digital technology is having a very real impact on the CRE industry but this might be in ways that surprise you. This advancement is creating opportunities and value in new areas for investors and brokers.

Ways Technology is Changing CRE

The impact of technology on real estate is ever changing and in many cases, there are new property types that are created by this evolution. If you look back to the early 1980s, property types like data centers, electric vehicle charging stations, and the smart factories did not exist. We did though have a lot of Blockbuster video stores, Barnes & Nobles bookstores, and RadioShacks covering the map. Human needs change based on what is available and prevalent today and you can’t overlook the real estate component of these changes.

Another example is the rising demand for last-mile logistics and the impact this is having on the industrial sector. The last-mile delivery market is set to grow by 15% through 2027, adding $62.7 billion in value between 2023 and 2027 according to Research and Markets. This growth is taking place along transport hubs and links, and is following the migration of people to secondary and tertiary markets, and even into rural areas. We think there are some great new opportunities in unexpected markets for investors seeking that diamond in the rough property to add to their portfolios. And for sellers in secondary and tertiary markets, there is the chance to reach a new base of buyers, alert to the value to be found off the beaten track. 

A third example comes from the restaurant sector. Consider how quick-serve restaurants (QSR) have changed between 2020 and today. During the pandemic, successful QSR brands adopted third-party delivery app services to reach their customers in a low-touch way. There was also an increase in virtual kitchens – restaurants that only exist to service deliveries and takeaways, and do not cater for seated customers. As the pandemic ended, QSRs started rethinking their digital channels to avoid the high third-party costs, but to continue to offer their customers convenience. New developments included drive-thrus and online ordering kiosks on their premises. Each technological evolution impacts the property layout, and ultimately the brand’s ability to expand and grow. Savvy brands with the flexibility and agility to accommodate these changes have gone from strength to strength and grown their footprint, seeking to acquire new, similar premises from property investors.

It Starts With Data

To advise our investors on trends like these – and any trends and opportunities in CRE – we need access to data, and the ability to quickly transform that data into something meaningful for our clients. Whether you are a buyer or a seller, you need this information fast. This allows you to make the most appropriate decision at that time – whether that is to buy, sell, or hold.

Today, conversations around digital transformation involve concepts such as big data, predictive analytics, artificial intelligence (AI), and machine learning (ML). But we believe this is only part of the picture, and that today CRE companies should already be using available tools to work better, faster, and be more helpful to their clients. For us, this means collaboration, and the speedy and clear communication of accurate, well-informed insights so that our clients can make the right decisions. This is followed up with the ability to execute decisions quickly and effectively to make the most of the opportunity in days, rather than weeks or months.

The reality is that AI and ML-powered tools are already here. At SIG, we use these tools for everything from capturing call notes and action items to extracting lease data, creating proposals, summarizing legal documents and reporting on complex financials.

Today, anyone has access to the ability to analyze data without being a software engineer. All it takes is a willingness to learn, and an environment and culture conducive to innovation. Companies that have a digital-first approach certainly have an advantage here. In our case, we started SIG as a national triple net lease brokerage firm and because of that it was vital that we could reach investors across the country to find the best deal for our clients and the only way to do that was to be a digital-first company.

Introducing the Robo-Broker?

As much as we are fans of using technology to do things better and faster, we don’t see the robo-broker as the next evolution. It is unlikely that a robot will ever outperform a human broker that is powered by technology. A human’s ability to connect, build relationships and understand nuances is needed to complement and mediate the data delivered by technology to arrive at and execute on the best deal.

“We can all gain efficiency, effectiveness and accuracy by using technology,” says Ryan Passe, SIG Chief Operating Officer. “Overlaying this with people who understand what they are looking at, can harness the information, and do something with it is where value is created. People can understand the human impact, and build the deep, lasting relationships required to navigate the unexpected and work through tough issues. If you pair this with the technological innovations of the world we live in, this is a great recipe for success for our brokers, our clients and our company.” 

Contact SIG today to make your investment goals a reality.

The-Industrial-Property-Diamond-in-the-Rough

The Industrial Property Diamond in the Rough

January 17, 2024 – Atlanta, GA |  In the dynamic landscape of commercial real estate, the industrial market stands out as a sector that is both susceptible to threats and brimming with opportunities. Working exclusively in the Industrial store asset class, SIG Investment Advisor Solomon Colvin III has a good pulse and keeps a close eye on industry trends and data. With changing consumer preferences and advancements in technology, Industrial operators and investors alike must navigate a rapidly evolving market to stay competitive and capitalize on emerging trends. Read more

Rising Opportunities in C-Stores and Gas Stations

July 31, 2023 – Atlanta, GA |  In the dynamic landscape of commercial real estate, the convenience store market stands out as a sector that is both susceptible to threats and brimming with opportunities. Working exclusively in the convenience store asset class, SIG Investment Advisor Matthew Riznyk has a good pulse and keeps a close eye on industry trends and data. With changing consumer preferences and advancements in technology, convenience store operators and investors alike must navigate a rapidly evolving market to stay competitive and capitalize on emerging trends. Read more

Why You Should Invest in Medical Office Buildings

What is a Medical Office Building?

Often located near hospitals or on hospital campuses, medical office buildings (MOB’s) are a type of commercial real estate building that falls under the office asset class. They differ from traditional offices because of the building requirements needed to satisfy the needs of healthcare facilities with features intended specifically for use by physicians and other healthcare personnel such as waiting, exam and operating rooms. MOB’s are typically built with considerations for superior soundproofing for doctor-patient confidentiality, advanced air ventilation standards and have special requirements around parking and ADA accessibility.

3 Reasons You Should Invest In Medical Office Buildings?

Medical office buildings are seen as a lower risk commercial real estate investment for many reasons.

  1. Healthcare is a fundamental human need that will not go away nor diminish. People will continue to need medical attention regardless of their financial situation. The COVID-19 pandemic has shown how resilient the industry is. This is demonstrated by the sector’s robust rental income, which has remained over 95% for the last two years. Most MOB renters were able to pay their rent on time as patients continued to seek treatment despite the economy. While elective treatments could be postponed, those who are unwell or require urgent medical care will still need to visit the hospital whether the stock market is rising or falling.
  2. Forecasted increase in demand. Due to the large size of the baby boomer generation individuals over the age of 65 will increase by 73 percent between 2010 and 2030. One in five Americans will be a senior citizen. Easier access to medical care will be critical for the US’s aging population. People tend to visit the hospital more the closer they get to retirement. Senior citizens typically visit a doctor ten times more often than those of a younger age. These increased medical needs create a higher demand for more medical offices building locations specifically close to suburban areas and neighborhoods.
  3. History of strong performance. If you take a look at the top 50 MOB markets in the US, transaction volume has grown from $18.2B to $24.5B in the last quarter alone, vacancy rates have fallen 40 basis points in the first half of 2022 to 8% and transaction volume has also increased by 79.2% from 2021, setting yet another record for the sector. Higher prices don’t always mean higher rents and having a trusted investment advisor who is familiar with these markets is important in order to avoid investment deals with weaker cash flows. If you know where to look, medical office properties in specific markets provide a solid tenant mix that will yield long-term value for investors.

Learn More With Sands Investment Group

If you want to invest in medical office buildings, you can trust that Sands Investment Group’s specialized Medical Office Building team will provide top notch advice. We are a commercial real estate brokerage firm specializing in purchasing and selling commercial investment properties for private investors and organizations throughout the United States. Contact us today to learn more about our services.

are cap rates moving?

Are Cap Rates Moving?

To understand whether cap rates are moving, one must first understand their influence on the world of commercial real estate investing. A cap rate, or capitalization rate, is considered a real estate valuation measure that plays a role in comparing different real estate investments. The cap rate calculation is the annual net operating income (NOI) ratio to the asset’s market value. This provides the rate of return for professionals to use in comparison.

Now more than ever, the importance falls on the movement of these cap rates. In a year like 2022, it can seem like nothing is certain in the world of investments. However, understanding this valuation can give you insight that benefits your financial decisions in the long term. Learn more with Sands Investment Group to get started.

What Factors Affect Cap Rate?

As in the rest of the world of investing, specific factors can influence cap rates. It comes down to three main options that can make this number change. The first of these is macro-level economics and demographics. Next, the micro-level market influences come in. Finally, the property type plays a role in changing the cap rate.

By seeing the influence of each of these factors, it is understandable that cap rates can vary by the area you are observing. However, the market as a whole maintains a similar direction depending on the macro-level economics of the country and the world.

How Can The Cap Rate Move?

The movement of cap rates depends on the factors that affect the quantities included in the ratio. The direction of cap rates is considered cyclical as they go up and down depending on how the market looks at a given time.

To see how the cap rates are currently moving, you have to look at the state of the market. Take interest rates, for example. When interest rates are low, you provide lower payments, allowing for lower monthly debt payments on a given property. The cap rate drives down by increasing the purchase price in the cap rate equation. Thus, when interest rates are low, generally so are cap rates. When interest rates are high, the cap rates usually rise as well.

Stephen Plourde of Sands Investment Group explains that buyers expect increased cap rates across multiple product types as a direct result of the finance-ability of NNN deals, precisely because of the recent and anticipated rise in interest rates.

As we look at the current market, Plourde explains that there are still 1031 exchange buyers at aggressive cap rates similar to the last 24 months; however, there is a disconnect between buyers and sellers, specifically when a buyer requires financing. “Smart sellers will sell their properties more quickly in today’s market when they recognize that the market has shifted. They must work collaboratively with their Investment Advisor to price their properties with a forward-looking approach,” says Plourde. Looking in the rear-view mirror will lead to sellers missing the buyers looking to transact in the 3rd and 4th quarters of the year.

Learn More With Sands Investment Group

Understanding cap rates is essential as you enter the world of commercial real estate investing. That is why you must work with a company with the research and data-driven expertise to back it. At Sands Investment Group, our team is ready to get you started from the beginning to help you make impactful deals. Don’t waste any time, and get started with us today! There is always more to learn as cap rates move and change.  Learn more about investing in commercial real estate with Sands Investment Group today. Call 844.SIG.NNN or find out more on our website.

 

SIG Brokers $13M Sale of Tires Plus Portfolio in Atlanta

ATLANTA, GA – Sands Investment Group’s (SIG) Atlanta based automotive net-lease broker, Harry Archer, brokered the sale of a $13 million 8-unit Tires Plus portfolio across Atlanta and Athens, GA. Harry Archer and his team at Sands Investment Group represented the seller, a Southeast based private investor, as well as the buyer, a California-based REIT.
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SIG Named to Inc. 5000 List of America’s Fastest-Growing Private Companies

Sands Investment Group Earns Recognition For Excellence in Leadership and Dynamic Growth!

Sands Investment Group (SIG) announced today its placement on the prestigious annual Inc. 5000 list of America’s fastest-growing private companies. The independent American business magazine provides insight into the dynamic success of small businesses in the US economy. Read more