Wawa was founded in 1803, when the Wood family ran a New Jersey iron foundry. The company had changed its focus to dairy farming in Wawa, Pennsylvania, by 1902 under George Wood, supplying the area with "doctor-certified" milk. Following World War II, home delivery became less common. Grahame Wood responded creatively by opening the first Wawa Food Market in Folsom, Pennsylvania, on April 16, 1964. Starting out selling dairy products, the store became a pioneer in convenience stores by introducing house-blended coffee and premade hoagies in the early 1970s. In 2002, it added touchscreen hoagie kiosks to increase speed and service. Since its humble beginnings, Wawa has grown into a well-liked Mid-Atlantic institution, with over 1,100 locations in ten states and an estimated yearly revenue of $18 billion by 2023.
In addition to being well-liked convenience stores, Wawa locations are also great rental properties for business real estate investors. Wawa usually enters into triple-net (NNN) long-term leases because it is a privately held business with a solid financial base. These leases lower landlord costs and generate a steady, passive income stream by shifting duties like maintenance, insurance, and property taxes to the tenant. Consistent foot traffic and long-term viability for nearby businesses and real estate are ensured by their dedication to high-traffic, strategic locations, which are frequently close to highways, residential developments, and important retail corridors.
From an investment standpoint, Wawa's locations are very appealing due to their expanding footprint throughout the Mid-Atlantic and Florida regions, recession-resistant business model, and brand loyalty. Wawa-leased properties typically hold their value well and are in high demand when they go up for sale. Wawa is a great addition to any commercial portfolio for investors looking for dependable, low-risk income with national credit-level security in their tenant mix.
