Tenant Description

The Home Depot is a home improvement retailer offering a wide assortment of building materials, home improvement supplies, lawn & garden products, as well as numerous services catering to do-it-yourself customers. As of Jul 29, 2018, the company operated 2,286 stores in all 50 states, the District of Columbia, Puerto Rico, US Virgin Islands, Guam, 10 Canadian provinces and Mexico, as well as homedepot.com, homedecorators.com, redbeacon.com and blinds.com. As of Jul 29, 2018, Home Depot operated 2,286 stores including 1,981 stores in all 50 states, the District of Columbia, Puerto Rico, US Virgin Islands and Guam, 182 stores in 10 Canadian provinces and 123 stores Mexico. In fiscal 2017, the company opened 3 new stores in the US and 3 new stores in Mexico. The company opened new stores in Stamford, CT and Mexico during the first half of fiscal 2018. During fiscal 2018, the company expects to open 3 new stores. At fiscal year-end, approximately 90% of stores were owned (including ground leases) consisting of 213.7 million square feet, and approximately 10% of stores were leased consisting of 23.7 million square feet. Stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area.

Real Estate Summary

Under Construction.

  • Industry-leading investment-grade credit
  • Compressed cap rates due to high investor demand
  • Rental escalations in base term
  • Generally high rental rates PSF that could prove hard to replace in the event 7-Eleven vacates
  • Low price point relative to similarly strong investment-grade tenants
  • Investor unable to depreciate improvements in ground-leased locations
  • Predominantly Absolute to Modified NNN ground leases with zero to limited landlord responsibilities
  • Widely considered "recession proof"
    and "Amazon proof"
  • Industry-leading market share and track record of profitability
  • Predominantly corner locations in urban markets with excellent demographics and population density
  • One of the lowest relocation rates in the net lease industry
  • Development Criteria Highlights

    • 50,000 +/- square feet of Land
    • Corner or corner wrap w/signage on two major streets.
    • Signalized intersection.
    • Ability to build up to 4,000 sq. ft.
    • Parking to meet all applicable codes.
    • Ability to build to a minimum height of 23’4″.

    Average Cap Rate
    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated quarterly)
    Credit Rating
    Standard & Poor's
    Company Snapshot
    Company Name

    McDonalds Corp.

    Ownership Type


    Stock Symbol



    Oak Brook, IL

    Locations Worldwide


    Locations in the U.S.




    Average Property & Lease
    Sales Price


    Annual Base Rent


    Annual Rent PSF


    Building SF


    Price PSF


    Lot Size

    1.15 Acres

    Ownership Interest

    Fee Simple Land
    (Ground Lease)

    Lease Structure

    Absolute NNN

    Lease Term

    20 Years


    10% Every 5 Years


    McDonald's Corp.

    National 12-mo avg.
    (Source: CoStar & proprietary comp data -
    updated quarterly)