Retail as an asset class has been written off by many investors. E-commerce disruption and shifting consumer behavior have led some to assume retail is in permanent decline. But the reality is more nuanced. While commodity retail has struggled, service-based retail continues to thrive — and plays an important role in durable portfolios.
What Is Service-Based Retail?
These are tenants that provide services consumers can’t replace online:
- Grocery stores.
- Fitness centers.
- Experiential retail like theaters, or personal care.
Why It Matters
Service-based tenants drive consistent foot traffic and meet daily needs. They are less sensitive to e-commerce disruption and more embedded in community demand. This makes them attractive long-term anchors for institutional investors.
Sentinel’s Strategy
Sentinel selectively acquires service-based retail as part of diversified portfolios. These assets provide durable cash flow linked to essential services — not discretionary trends. Combined with creditworthy tenants and disciplined lease structures, they offer long-term resilience.
The Takeaway
Not all retail is equal. Investors should avoid broad generalizations and instead recognize that service-based retail remains a critical piece of durable, cycle-resistant portfolios.
