Introduction: As investors seek ways to protect their portfolios from the impacts of inflation, net lease properties have emerged as a promising option. Offering stable and predictable income streams, net lease properties provide an attractive investment opportunity in times of economic uncertainty. In this blog post, we will explore the best net lease properties to buy as a hedge against inflation. From retail to industrial properties, we will highlight the key factors to consider and the top properties that offer potential for long-term growth and protection against inflation.

 

Dollar General: Dollar General stands out as a top choice in the net lease sector. With over 17,000 stores across rural and suburban areas, Dollar General boasts a recession-resistant business model. These properties typically feature long-term leases, stable rental income, and built-in rental escalations that help investors keep pace with inflation.

 

Pharmacy Chains: Pharmacy chains, such as CVS and Walgreens, offer reliable net lease investment opportunities. With strong demand for healthcare services, these properties provide stability and consistent cash flow. Additionally, pharmacy chains often incorporate annual rent increases, making them an excellent hedge against inflation.

 

Fast Food Chains: Investing in net lease properties leased to fast food chains like McDonald’s or Burger King can be a smart move to hedge against inflation. These properties benefit from high-traffic locations and long-term lease agreements, ensuring a steady rental income. Moreover, their ability to adjust menu prices in response to inflationary pressures helps protect the investor’s income stream.

 

Industrial Properties: Industrial net lease properties, including warehouses and distribution centers, have gained traction as a hedge against inflation. The rise of e-commerce and the need for efficient supply chain management have increased demand for industrial properties. These assets often feature long-term leases with built-in rent escalations, providing protection against inflation and potential for capital appreciation.

 

Medical Office Buildings: Investing in medical office buildings is another viable strategy.