Interested in selling your AutoZone NNN property or AutoZone ground lease property and was wondering what you can get for it in today’s changing market?
Contact us for a complimentary broker opinion of value for your off-market AutoZone NNN property for sale or AutoZone ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your AutoZone NNN property or the inclusion of a AutoZone ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market AutoZone properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
As of January 2023, AutoZone has over 6,000 stores in the United States, Mexico, Brazil, and Puerto Rico.
Revenue and income
In 2022, AutoZone’s total revenue was $13.4 billion. Net income was $1.3 billion.
Future plans
AutoZone plans to continue expanding its global footprint. In 2023, the company plans to open over 500 new stores worldwide. AutoZone also invests in new technologies, such as self-checkout and mobile ordering.
Corporate vs. franchise
About 90% of AutoZone stores are company-owned. The remaining 10% are franchised. Franchisees typically pay a franchise fee of $10,000 to $25,000 and a royalty fee of 5% of gross sales.
Additional information AutoZone Properties
AutoZone was founded in 1979 in Memphis, Tennessee.
The company’s name refers to the fact that it sells auto parts.
AutoZone holds the title of being the United States’ largest retailer of automotive replacement parts and accessories.
The company’s most popular products include batteries, oil filters, and brake pads.
AutoZone is a publicly traded New York Stock Exchange (NYSE) company.
AutoZone History
AutoZone was founded in 1979 by J.R. “Pitt” Hyde III and Forrest E. Smith. The first Auto Shack store was opened in Forrest City, Arkansas, on July 4, 1979. The company was originally a division of Malone & Hyde, Inc., a Memphis-based wholesale grocer. In 1986, Auto Shack was spun off to operate as an independent, freestanding company; in 1987, the name was changed to AutoZone.
AutoZone has increased over the years. The company has over 6,700 stores in the United States, Mexico, and Brazil. AutoZone is the dominant player in the U.S. automotive aftermarket parts and accessories retail market. The company’s commitment to providing quality parts and accessories, convenient store locations, and excellent customer service has made it a popular destination for DIY and professional mechanics.
Why Invest in Ground Lease and NNN Lease of AutoZone?
Investing in AutoZone’s ground lease and triple net (NNN) lease properties offer compelling reasons:
1) AutoZone NNN Property Investment: Stable income
AutoZone nnn property investment offers stable income as it involves investing in properties leased to AutoZone, a well-established and profitable company with a strong track record of growth. This provides investors with a reliable income stream.
2) AutoZone NNN Property Investment: Established tenant
AutoZone nnn property investment provides an established tenant in the form of AutoZone, a national retailer with over 6,000 stores in the United States. Opting for this can significantly reduce the risk of vacancy or lease default.
3) AutoZone NNN Property Investment: Low management responsibility
By choosing AutoZone nnn property investment, the landlord benefits from low management responsibility. The tenant, AutoZone, is responsible for property maintenance and expenses, minimizing the landlord’s management obligations.
4) AutoZone NNN Property Investment: Favorable lease terms
Investing in AutoZone nnn property means enjoying favourable lease terms with long durations and built-in rent escalations. These lease conditions ensure a predictable income and offer the potential for rental growth over time.
5) AutoZone NNN Property Investment: Real estate value
AutoZone nnn property investment becomes even more attractive due to the real estate value associated with AutoZone stores. These properties are typically strategically located in high-traffic areas, positively impacting property value and potential appreciation over the investment period.
Pros and Cons of AutoZone Ground Lease and NNN Lease Investment
Pros:
1. Stable income from a well-established company.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.
Cons:
1. Lease renewal risk when the term expires.
2. Dependency on AutoZone’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Investing in AutoZone’s ground and NNN lease properties can generate consistent income and build long-term wealth.
Nevertheless, conducting thorough due diligence and grasping the inherent economic and market risks associated with real estate investments is crucial before making any investment decisions.