Discount grocer ALDI has been on an expansion tear as of late⁠—and that's creating big opportunities for net lease investors. 

"With its long-term leases in the 15- to 20-year range, zero landlord responsibilities, typical 5.0 percent rent increases every five years, and well-located real estate, ALDI has become extremely attractive to net lease investors," says Tom Georges, a Director in Stan Johnson Company's New York office. "With its rapid expansion, there are significant opportunities for investors to acquire newly built ALDI-tenanted properties. Just as a dollar store can enter a market that a Walmart or other big-box retailer cannot, due to lower population density, ALDI can be successful because of its smaller format and low-cost business model."

ALDI stores are typically under 20,000 square feet, allowing the brand to serve markets that its competitors can't with fewer employees. The chain is one of the most in-demand brands within the single-tenant net lease sector, particularly amid materials and labor shortages.