Office Depot

Interested in selling your Office Depot NNN property or Office Depot 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 Office Depot NNN property for sale or Office Depot 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 Office Depot NNN property or the inclusion of an Office Depot ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Office Depot 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, Office Depot has over 1,400 stores in the United States. The company also has a presence in Mexico and Canada.

Revenue and income

In 2022, Office Depot’s total revenue was $10.8 billion. Net income was $270 million.

Future plans

Office Depot plans to continue expanding its digital presence. In 2023, the company plans to invest heavily in its e-commerce platform and mobile app. Office Depot also looks to open new stores in key markets, such as Latin America and Asia.

Corporate vs. franchise

About 70% of Office Depot stores are corporate-owned. The remaining 30% are franchised. Franchisees typically pay a franchise fee of $100,000 to $250,000 and a royalty fee of 5% of gross sales.

Additional information Office Depot Properties

Office Depot History

Office Depot traces its roots back to 1986 in Delray Beach, Florida. The company was founded by David B. Glass, Jeffrey Brotman, and Staples co-founder Leo Kahn. Office Depot is the second largest office supply retailer in the United States, after Staples. The company operates over 1,400 stores in the United States and Mexico.

Why Invest in Ground Lease and NNN Lease of Office Depot?

Investing in Office Depot’s ground lease and triple net (NNN) lease properties offers compelling reasons:

1) Office Depot NNN Property Investment: Stable income

With a well-established brand and strong market presence, Office Depot provides reliable income streams. Ground and NNN leases offer predictable cash flows over the long term.

2) Office Depot NNN Property Investment: Established tenant

Office Depot’s success and recognizable brand reduce the risk of vacancy or lease default, ensuring a stable tenant for the property.

3) Office Depot NNN Property Investment: Low management responsibility

In-ground and NNN leases, the tenant manages property maintenance and expenses, minimizing the landlord’s management obligations.

4) Office Depot NNN Property Investment: Favorable lease terms

Long lease terms with built-in rent escalations provide predictable income and potential rental growth.

5) Office Depot NNN Property Investment: Real estate value

Office Depot’s strategic locations in high-traffic areas can increase property value, offering potential capital appreciation.

Pros and Cons of Office Depot Ground Lease and NNN Lease Investment

Pros:

1. Stable income from a well-established brand.
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 Office Depot’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.

Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.