Hy-Vee
Interested in selling your Hy‑Vee NNN property or Hy‑Vee ground lease property and 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 Hy‑Vee NNN property for sale or Hy‑Vee 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 Hy‑Vee NNN property or the inclusion of a Hy‑Vee ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off‑market Hy‑Vee properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
Hy‑Vee operates around 285–290 retail stores across the Midwestern United States. In addition to its full‑service supermarkets, Hy‑Vee also runs a growing number of convenience/express‑format stores under its “Fast & Fresh” banner.
Revenue and income
As of recent publicly available data, Hy‑Vee had annual sales / revenue of approximately US$ 12 billion. Because Hy‑Vee is privately held and employee‑owned, detailed public data on net income (profit) is not typically disclosed. But its sales volume and scale of operations place it among the largest privately owned grocery retailers in the U.S.
Future plans
Hy‑Vee has been evolving beyond traditional supermarkets by expanding alternate store formats — especially the “Fast & Fresh” convenience‑style stores, which focus on fresh foods and ready-to-eat meals. The company also continues investing in omnichannel and digital shopping solutions (e.g. online ordering, delivery), health‑oriented services, and diversified offerings beyond groceries, reflecting a strategy to adapt to changing consumer behaviors and competition in retail.
Corporate vs. franchise
Hy‑Vee is employee‑owned — meaning that rather than being a publicly traded company or a franchise chain, the company is owned by its employees via a trust structure. All Hy‑Vee stores are corporate‑owned under this model. There is no widespread franchise model for Hy‑Vee stores like in some convenience‑store chains.
Additional information H-E-B Properties
1. Hy‑Vee was founded in 1930, when entrepreneurs Charles Hyde and David Vredenburg opened a small general store in Beaconsfield, Iowa.
2. The name “Hy‑Vee” itself is a portmanteau derived from the founders’ names “Hyde & Vredenburg.”
3. Over decades, Hy‑Vee expanded beyond Iowa into several Midwestern states, adding full‑service supermarkets, pharmacies (“Drug Town” / Hy‑Vee Drugstores), health clinics, fuel/convenience services, and more.
4. The chain has adapted to consumer trends — including healthy living, online ordering, in‑store fresh foods and prepared meals, and different store formats to serve various customer needs (full grocery, quick meals, convenience, etc.).
Hy‑Vee History
Hy‑Vee traces its roots back to 1930, when entrepreneurs Charles Hyde and David Vredenburg opened a small grocery store in Beaconsfield, Iowa. Over the decades, the company grew steadily under family leadership, expanding across the Midwest while maintaining a focus on quality, customer service, and community engagement.
Hy‑Vee evolved from a single general store into a full-service supermarket chain, offering groceries, fresh produce, bakery items, pharmacy services, and health-focused products. The company also developed multiple store formats, including Fast & Fresh convenience stores, Central Market upscale stores, and Joe V’s Smart Shop discount formats to meet diverse consumer needs.
Today, Hy‑Vee operates over 285 stores in multiple Midwestern states and is privately held through an employee-owned structure. Known for its strong community presence and customer loyalty, Hy‑Vee continues to innovate with new store formats, digital shopping solutions, and expanded services, solidifying its position as a leading regional grocery retailer.
H‑E‑B offers a wide variety of products, including groceries, fresh produce, bakery items, dairy, pharmacy services, and specialty natural and organic products. It also operates specialty formats such as Central Market, H‑E‑B Plus!, Mi Tienda, and Joe V’s Smart Shop, catering to diverse market segments.
Today, H‑E‑B operates over 435 stores across Texas and Mexico and is privately held, with a strong reputation for customer loyalty, community engagement, and innovation in grocery retail. Its headquarters is located in San Antonio, Texas, and the company continues to expand its footprint while maintaining its focus on high-quality products and customer service.
Designed to resemble an indoor farmers market, Sprouts focused on fresh produce, natural and organic foods, bulk items, and health-oriented grocery products. Its unique format—smaller than traditional supermarkets but more curated than typical natural food stores—quickly resonated with shoppers seeking healthier, affordable alternatives.
In 2011, Sprouts merged with Henry’s Farmers Market and Sunflower Farmers Market, consolidating several natural-foods banners under one rapidly growing brand. The company continued to expand aggressively, entering new states and strengthening its supply chain to support coast-to-coast distribution.
Today, Sprouts Farmers Market operates more than 440 stores across the United States, with a strategic focus on fresh, organic, plant-based, and wellness-driven products. Its commitment to a “farm-stand heritage” shopping experience, combined with competitive pricing and innovative store layouts, has positioned Sprouts as a leading natural grocery retailer in the U.S. market.
Why Invest in Ground Lease and NNN Lease of Hy‑Vee?
Investing in a Hy‑Vee ground lease or NNN lease property can present a compelling opportunity; here are the reasons:
1) Hy‑Vee NNN Property Investment: Stable income
As a large, established, and employee‑owned grocery chain with strong regional presence, Hy‑Vee provides reliable long-term income potential under NNN or ground leases.
2) Hy‑Vee NNN Property Investment: Established tenant
Hy‑Vee’s proven track record, scale, and brand recognition across multiple states help reduce the risk of vacancy or lease default.
3) Hy‑Vee NNN Property Investment: Low management responsibility
Under a NNN or ground lease, Hy‑Vee as tenant typically takes care of property maintenance, insurance, taxes, and operating expenses — giving landlords a hands-off, passive investment.
4) Hy‑Vee NNN Property Investment: Favorable lease terms & Diversified formats
Given Hy‑Vee’s mix of store formats (full supermarkets, convenience‑style Fast & Fresh, fuel/convenience outlets), there is flexibility and adaptability — potentially improving tenant stability. Long-term lease structures are common in such investments, and with Hy‑Vee’s continuous store format innovation and multi‑channel retail approach, there is forecasted resilience.
5) Hy‑Vee NNN Property Investment: Real estate value and demographics
Hy‑Vee stores tend to be located in growing Midwestern communities and suburban areas — areas where grocery demand remains stable or rising. That, combined with a stable tenant like Hy‑Vee, may support property value appreciation over time.
Pros and Cons of Hy‑Vee Ground Lease and NNN Lease Investment
Pros:
1. Stable income stream from a well-recognized, established grocery brand.
2. Reduced vacancy / default risk due to Hy‑Vee’s size, reputation, and diversified business model.
3. Low landlord responsibility — tenant typically handles maintenance, taxes, insurance, and day-to-day property operations.
4. Potential for long-term lease stability and rent escalations (depending on lease terms).
5. Properties with Hy‑Vee tenants often benefit from desirable locations (high foot traffic, community demand for groceries).
6. Diversified store-format strategy by Hy‑Vee, including supermarkets, convenience/express stores, and fuel/convenience—giving flexibility and resilience in changing retail landscapes.
Cons:
1. As with any lease investment — there is lease renewal risk: at lease expiration, tenant may renegotiate or decide not to renew.
2. Tenant dependence risk: performance of your investment depends heavily on continued success of Hy‑Vee. Changes in consumer habits, competition, or company strategy could impact lease stability.
3. Market competition & retail disruption: Grocery retail is increasingly competitive, impacted by online grocery, discount grocers, changing consumer preferences — which could affect store profitability or expansion.
4. Limited landlord control over property use: Under ground/NNN lease, tenant handles most operations; landlord may have little say in modifications, branding, or operational decisions.
5. Real estate market risks: Economic conditions, interest rates, local market demographics may affect property value, cap rates, and long-term return potential.
Thorough due diligence and consideration of Hy‑Vee store location, lease terms, tenant financial strength, and overall investment strategy are essential. Consult real estate professionals and financial advisors to ensure the investment aligns with your goals and risk tolerance.
MarketWatch: Hy‑Vee
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