Investor demand for stable, corporate-backed triple-net assets remains robust across British Columbia and Alberta, driving significant activity in secondary markets. These properties, where tenants cover all operating expenses, are proving particularly attractive for their low-maintenance, reliable income streams, even outside major urban centers.
Key Takeaways
- Triple-net properties with strong corporate tenants are highly sought after in Western Canada's secondary markets.
- Recent sales of 7-Eleven and Kal Tire locations demonstrate sustained investor interest in stable, cash-flowing retail assets.
- Future offerings include KFC drive-thrus and Peavey Mart locations, indicating continued momentum in the triple-net sector.
Strong Tenant Covenants Attract Investors
Commercial brokerage Marcus & Millichap reports a consistent investor chase for stable, corporate-covenant opportunities, even in markets beyond primary and secondary centers. Triple-net assets appeal to investors because tenants assume responsibility for all operating costs, making them relatively hands-off investments. This appeal has been amplified in recent years due to the stable returns these properties offer when occupied by in-demand services.
Notable Transactions
In July, Marcus & Millichap facilitated the sale of four strategically located 7-Eleven Canada Inc. properties in Merritt, Oliver, Williams Lake, and 100 Mile House. These single-tenant retail assets, backed by 7-Eleven's strong corporate covenant, generated multiple bids and achieved strong pricing, highlighting investor demand for reliable cash flow in robust secondary markets.
Prior to this, a portfolio of seven Kal Tire stores across southern B.C. was sold to a private investor from the Lower Mainland for nearly the asking price of $9.28 million, following a competitive process that attracted over 20 offers. A second tranche of Kal Tire stores in northern B.C. quickly went under contract, with a third tranche of approximately nine properties across Alberta, Saskatchewan, and Manitoba slated for launch this fall.
Future Opportunities
Looking ahead, Marcus & Millichap anticipates similar demand for 18 KFC drive-thru quick-service restaurant locations across B.C., Alberta, and Saskatchewan, being offered as a complete package. Additionally, a three-property portfolio in B.C. and Alberta formerly tenanted by Peavey Mart is being listed with vacant possession, offering flexibility for repositioning or owner-user occupancy.
Curtis Leonhardt, managing director of investments at Marcus & Millichap, noted that "competitive bid processes and targeted pre-marketing have been critical in matching assets with motivated buyers." He added that "investors continue to pursue scale and stability in the triple-net sector, and with multiple portfolios in motion through the second half of 2025, we expect momentum to carry forward into 2026."
