CHICAGO—The American auto industry has undergone a revival, but the number of older cars on the road continues to increase, and that is good news for auto parts stores. Competition for properties in this sector keeps getting more intense, and this will likely continue in the near future.
Cap rates for the single tenant net leased auto parts stores decreased by 8 bps from the fourth quarter of 2015 to the fourth quarter of 2016 to 5.9%, according to a new study just released by the Boulder Group, a net lease firm in suburban Chicago.
The decline in cap rates for the auto parts store sector slightly outpaced the overall net lease retail market which compressed by 6 bps over the same time period. Boulder examined sales activity among properties occupied by Advance Auto Parts, AutoZone and O'Reilly Auto Parts as the three account for the highest percentage of single tenant transactions.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
