Rising interest rates and a shrinking Federal Reserve balance sheet have investors hunting for alternative strategies, and Fred Hubler points to an unexpected beneficiary: gas stations and convenience stores. While most real estate investors focus on multifamily, office, retail, and industrial properties, he argues these overlooked assets are emerging as top contenders in the alternative real estate space.
He explains that the Fed’s aggressive tightening in 2022 and 2023 has squeezed traditional financing, especially for small and mid-sized businesses, pushing many banks toward a “wait and see” approach to lending. That squeeze on capital access, Hubler notes, has revived interest in the sale-leaseback transaction strategy, which lets businesses that own their real estate unlock capital for growth while retaining long-term control of the property through structured leases.
An unexpected trend: some of the least glamorous real estate assets are becoming some of the most resilient ones in this rate environment.
Get the details on Forbes: Gas Stations & Convenience Stores: Stars In A Tight Credit Market