At first glance, Walmart’s entrance into the market for refurbishing and selling used video games may appear to pose a significant threat to GameStop, whose pre-owned game sales clear substantial gross profit margins for the company.
Despite signs of an improving economy, observers of retail trends expect that more storefronts will close their doors this year as retailers adjust to demographic trends and the continuing popularity of e-commerce.
Though institutional players have increasingly been entering the net-lease market, advisors say that interest among individuals remains strong, as investors seek the greater control and stability offered by net-lease properties. Whereas investors in REITs must give up control over the particular properties their money goes into, direct investors can form “mini-REITs” of their own composition, says Rahul Sehgal, Chief Investment Officer for Inland Private Capital Corp. in Chicago.
With demand in the net lease market tightly constricted, investors looking for opportunities are being forced to take a fresh look at secondary and tertiary markets just to find any possibilites to invest.