Net lease assets occupied by Advance Auto Parts fill a highly desired price range, generally trading between $1.0M - $2.0M. Additionally, the prototypical Advance Auto store lends itself to a wide array of reuses in the unlikely event of a vacancy. Advance Auto Parts prefers 0.75 - 1.25 acres of land for their 7,000 SF rectangular retail buildings.

Lease agreements can vary between 10 and 20 years in length, however a 15-year NN term seems to be most common Advance Auto lease structure. Specific lease terms and landlord obligations vary, but generally the landlord is responsible for maintenance of the roof and structure. Alternatively, some sites have been leased on an absolute NNN basis with no landlord responsibility. The difference between these a NN and NNN Advance Auto lease is usually offset by rent escalations. It is common for the NN lease to include rental increase in lease year 11, while the NNN leases are based on a flat rental rate over the entire primary lease term.

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Jonathan Hipp

Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.

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