KW Net Lease Advisors closely monitors major single tenant net lease retailers’ footprint in the marketplace. See below for year-over-year new store development and progress made through Q1 of 2017

Chart 1: New Store Development Plan 2016-2017 YOY Comparison

*estimated number based on average converted stores in past 3 years

Behind the Numbers:

• Major dollar stores have been carrying out aggressive expansion plans for 2017.
• Major auto parts stores have different strategies for greater penetration in existing markets and expansion to new markets.
• AAP plans to add 25% more new stores this year compared to 2016. O’Reilly anticipates fewer new stores opening than 2016, as they are allocating resources to convert previously acquired stores.
• As of Q1 2017, most retailers on our watch list are effectively executing their expansion plans.
• In addition to constructing new stores and renovating current stores, Dollar General is also actively acquiring existing store locations from other retailers.
• CVS is not focusing on store expansion in 2017. They are rolling out a new store design, more heath/beauty products and other customer focused changes to identify new growth points and drive traffic to existing locations.