2 — May 2025 — M id A tlantic Real Estate Journal
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M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist ........Coldwell Banker Commercial
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Dan Spiegel, SIOR
Coldwell Banker: C-Stores are CRE Hotspots
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M ADISON, NJ — Coldwell Banker Commercial re- leased its latest Trend Report examining how convenience stores (C-stores) have shifted from quick stops for snacks and fuel to popular food desti- nations. This shift has made C-stores an attractive asset class for commercial real es- tate (CRE) investors, espe- cially in the net-lease market. “The convenience store in- dustry is evolving to meet changing consumer needs,” said Dan Spiegel, SIOR , se- nior VP and managing director of Coldwell Banker Commer- cial. “With smaller households, more urban locations, and evolving food preferences, the sector is undergoing significant transformation. Given their frequent visits, convenience stores must stay closely con- nected to shifting consumer lifestyles to remain competi- tive in the retail market.”
C-Store Product Mix Drives Growth The report highlights how C-stores have adapted from being fuel and snack retailers into quick-service food and grocery alternatives. Sales of prepared food have risen 12.2% year-over-year, and 56% of consumers now consider C- stores viable substitutes for fast-food chains. This growth, fueled by demand for conve- nient, affordable, and healthier food options, has added to the sector’s stability, even though profit margins remain narrow (around 5% to 7%). However, the high turnover of products and steady consumer visits compensate for the tight mar- gins, making C-stores a reliable source of income for investors.
The shift in consumer be- havior–especially as inflation raises grocery prices–has posi- tioned C-stores as an attractive alternative for those seeking fresh food at affordable prices. Changing Real Estate Needs As C-stores add more food service offerings, real estate needs are expanding. Chains like QuikTrip, Casey’s Gen- eral Stores, RaceTrac, and Wawa are investing in larger store formats to accommodate food preparation areas. Many operators are returning to urban centers and explor- ing non-traditional spaces, such as college campuses and downtown locations, which provide new opportunities for real estate investors. continued on page 8
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