Advance Auto Parts Inc (AAP) is a leading auto parts and accessories retail chain with a significant global physical presence. So it’s unsurprising that so many commercial real estate investors are interested in owning a part of this fastest-growing auto parts brand.
This article thoroughly explores Advanced Auto real estate requirements, including lease terms and necessities, to help you decide whether it’ll make a good addition to your portfolio. Let’s dive in!
Average Advance Auto Parts Lease Rates
Advance Auto lease rates vary significantly depending on the market conditions, property age, size, and location. However, the average rate for the auto parts retail chain is $1,840,000 with a five to 15-year lease term.
Some stores in desirable locations or high-traffic areas might have higher rates. Also, periodic adjustments like rent escalation or market fluctuations may affect the lease rate.
Requirements Needed to Secure Advance Auto Parts Lease Agreement
Potential landlords looking to secure a lease agreement from Advance Auto Parts Inc must meet several requirements, including demonstrating financial stability and having a high credit score.
The company ensures its properties are located on sites with high customer demand and traffic volume. However, it’s best to evaluate factors like the rental rate, lease term length, and other additional conditions and terms outlined in the agreement.
Since it’s a triple net lease investment, an Advance Auto landlord is not responsible for paying structure and roof repairs, property tax, or insurance.
Is Advance Auto Parts a Good Investment?
Advance Auto Parts (AAP) is an auto parts retail brand founded in Roanoke, Virginia, in 1932 and headquartered in Raleigh, NC. As a leading automotive aftermarket parts provider in the United States and other locations like the British Virgin Islands, AAP serves both do-it-yourself customers and professional installers.
Advance Auto Parts operates over 127 Worldpac branches and 5,000 stores in Canada and the United States. The leading automotive parts brand also serves 1,250 Carquest-branded stores in the British Virgin Islands, Turks and Caicos, The Bahamas, Mexico, and the United States.
In June 2021, the company bought Baxter Auto Parts, another automotive replacement accessories brand with 29 stores in California, Washington, and Oregon.
As a leading auto parts retail brand, Advance Auto Parts recorded $11.2 billion in net sales in 2022, a 1.4% increase from 2021, making it a profitable company to invest in. With more vehicles on the road, the demand for auto parts will undoubtedly increase, ensuring AAP’s future growth.
These factors indicate that Advance Auto real estate is a great investment option for long-term commercial property investors.
Become an Advance Auto Parts Property Owner Through NNN Deal Finder
If you’re considering buying an AAP property for sale, it’s best to work with a knowledgeable triple-net property broker like NNN Deal Finder to get all the details and expert help you need for a successful acquisition. Other auto parts retail brands like AutoZone and O’Reilly are available if you want to explore your options further.
Reach out to us today to understand how you can leverage Advanced Auto real estate requirements to grow your wealth!