Avis History
In 1946 Warren Avis established Avis at Willow Run Airport in Detroit, Michigan. The company was the first car rental operation located at an airport. Soon after, facilities were opened at Miami Airport. In 1953, franchise operations were begun in Europe, Canada and Mexico. Within a decade of its inception in 1946, Avis expanded its reach globally by opening its first international offices in Europe, Canada, and Mexico. In 1962, during CEO Robert Townsend’s tenure, the iconic corporate motto “We Try Harder” was adopted. Avis continued to grow throughout the 1960s and 1970s. In 1962, the company acquired Budget Rent a Car. In 1972, Avis introduced Wizard; Avis made significant strides in the car rental industry, pioneering the first computer-based information and reservations system in the United States. Even today, most loyal Avis customers are recognized by their distinct “Wizard number.” In 1981, the company introduced the Advanced Vehicle Identification System (AVIS), a cutting-edge vehicle tracking system that enhanced operational efficiency and customer service.
Why Invest in Ground Lease and NNN Lease of Avis?
Investing in Avis’s ground lease and triple net (NNN) lease properties offer compelling reasons:
1) Avis NNN Property Investment: Stable income
Avis NNN property investment offers a stable income by investing in properties leased to Avis Car Rental, a well-established and reputable brand in the car rental industry. With ground and NNN leases in place, investors can expect consistent cash flows over the long term, providing a reliable source of income. For investors looking for properties for 1031 exchanges, this makes it a desirable choice because it enables them to postpone capital gains taxes by reinvesting the profits from selling another property into available Avis NNN properties.
2) Avis NNN Property Investment: Established tenant
Avis NNN property investment provides the assurance of an established tenant in the form of Avis Car Rental. With Avis’s strong market presence and brand recognition in the car rental industry, the risk of vacancy or lease default is reduced, ensuring a stable tenant for the property. This aspect particularly appeals to investors looking for replacement properties through a 1031 exchange, as they prioritize properties with reliable tenants to secure steady rental income.
3) Avis NNN Property Investment: Low management responsibility
Opting for Avis NNN property investment comes with the benefit of low management responsibility for the landlord. Ground and NNN leases place the burden of property maintenance and expenses on the tenant, Avis Car Rental, minimizing the landlord’s management obligations and alleviating potential headaches. This feature is advantageous for investors looking to identify replacement properties for a 1031 exchange, as they seek investments that require minimal day-to-day management.
4) Avis NNN Property Investment: Favorable lease terms
Investing in Avis NNN property brings favourable lease terms with long durations and built-in rent escalations. These lease conditions contribute to a predictable income stream and offer the potential for rental growth, making it a lucrative investment opportunity. These characteristics make Avis NNN properties for sale a suitable choice for investors conducting a 1031 exchange, as they seek properties that can generate consistent and increasing rental income.
5) Avis NNN Property Investment: Real estate value
Avis NNN property investment holds the advantage of real estate value enhancement due to Avis Car Rental’s strategic locations for its rental outlets—the investment benefits from increased property value and potential for capital appreciation by positioning properties in high-traffic areas. For investors engaged in a 1031 exchange, this potential for real estate value appreciation adds to the appeal of Avis NNN properties for sale as replacement investment options.
Pros and Cons of Avis Ground Lease and NNN Lease Investment
Pros:
1. Stable income from a well-established and respected brand in the car rental industry.
2. Reduced vacancy and lease default risks due to Avis Car Rental’s market position.
3. Limited management responsibilities for landlords, as the tenant handles property maintenance.
4. Long lease terms provide stability and potential for increased rental income.
Cons:
1. Lease renewal risk when the term expires, requiring renegotiation or finding a new tenant.
2. Dependency on Avis Car Rental’s success and any operational challenges they may face.
3. Market competition and fluctuations in the car rental industry can impact profitability.
4. Landlords may have limited control over certain property decisions due to the terms of the lease agreement.
5. As with any real estate investment, economic and market risks are inherent and should be carefully assessed.
Conducting thorough due diligence and considering factors such as location, lease terms, tenant strength, and investment strategy are crucial. For prudent decision-making, seeking counsel from real estate professionals and financial advisors is recommended to ensure your investment aligns with your objectives and risk tolerance.
