From a net lease standpoint, Kohl's offers a credit tenant backed guarantee with long term leases (often ground leases) and rent increases. Although Kohl's is a department store – in the same category as J.C. Penny – most of their locations are free-standing. Currently, Kohl's operates stores in every U.S. State but Hawaii.

As a retailer, Kohl's claims to offer “Off-mall” convenience and a combination of specialty and national brands for their customers. Kohl's also is active in remodeling their stores and states that 50% of their stores are either new or remodeled in the past 5 years. As of 2013, Kohl's leases approximately 65% of their stores while owning 35%. As of February 2013, Kohl's was rated as America's second favorite retail chain by Market Force Information and #1 in “Customer Loyalty Engagement Index” by Brand Keys.

Pros:

- Lease usually includes increases

- Investment grade credit tenant

- Corporate Guarantees

- Long term leases

Cons:

- High price point

- Due to size, harder to lease property if the tenant leaves

- Current trends point away from large scale retail stores

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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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