Hobby Lobby is an industry leader in the arts and crafts business, and is a highly sought after brand. While they are not currently rated they are universally regarded as strong company and a great tenant. Lease agreements can vary between 5 and 15 years in length, however a 10-year NNN term seems to be most common Hobby Lobby lease structure. Hobby Lobby is a strong credit tenant. The company has excellent corporate financial fundamentals and is consistently listed on Forbes list of America's Largest Private Companies. Generally, Hobby Lobby stores are located in a prime location in a dense and dynamic retail corridor.
Hobby lobby is attractive to investors because they typically have an initial term of 15 years with up to three five-year renewal options. In addition, there can be rent increases throughout the base lease term and option periods as well. Specific lease terms and landlord obligations vary, but generally the landlord is not responsible for the property.
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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.
