Ollie’s bargain outlet NNN Property Lease: Pros, Cons, and History

Ollie’s bargain outlet

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Number of locations

As of 2024, Ollie’s Bargain Outlet operates over 500 stores across 30+ states in the United States. The company has a strong presence in the Mid-Atlantic, Midwest, and Southeast regions and continues expanding into new markets.

Revenue and income

Ollie’s plans to continue its steady nationwide expansion, targeting the opening of 40–50 new stores annually. The company also focuses on opportunistic inventory buying, leveraging closeout deals, and expanding into underpenetrated markets to support long-term growth.

Future plans

Corporate vs. franchise

Ollie’s does not franchise its stores.
All locations are corporate-owned and operated, allowing the company to maintain consistent pricing, inventory strategy, branding, and operational control across all markets.

Additional information – Ollie’s Bargain Outlet Properties

Ollie’s Bargain Outlet was founded in 1982 in Mechanicsburg, Pennsylvania.
The company’s name comes from its mascot, “Ollie the Bargain Hunter,” reflecting its value-focused retail philosophy.
Ollie’s is a discount closeout retailer, offering brand-name merchandise at deeply discounted prices across categories such as housewares, food, books, flooring, and seasonal goods.
Ollie’s is publicly traded on NASDAQ under the ticker OLLI and is headquartered in Harrisburg, Pennsylvania.

Ollie’s Bargain Outlet History

Ollie’s Bargain Outlet traces its roots back to 1982, when the first store opened in Mechanicsburg, Pennsylvania, with a focus on selling closeout and excess merchandise at deeply discounted prices. What began as a small discount operation evolved into a specialized closeout retail model, sourcing brand-name products from manufacturers, wholesalers, and retailers with excess inventory. Over the years, Ollie’s built a loyal customer base through its value-driven approach and “treasure hunt” shopping experience. The company’s disciplined expansion strategy and strong buying power fueled steady growth, leading to its initial public offering in 2015. Today, Ollie’s operates hundreds of stores across the United States and is recognized as a leading off-price retailer, continuing to expand while staying true to its bargain-focused roots.

Why Invest in Ground Lease and NNN Lease of Ollie’s Bargain Outlet?

Investing in Ollie’s Bargain Outlet ground lease and triple net (NNN) lease properties offers several attractive advantages for long-term investors:

1) Ollie’s Bargain Outlet NNN Property Investment: Stable income

Ollie’s operates a resilient, value-driven retail model that performs well across economic cycles, providing stable and predictable income through long-term ground and NNN lease structures.

2) Ollie’s Bargain Outlet NNN Property Investment: Established tenant

As a publicly traded national retailer with hundreds of locations, Ollie’s offers strong tenant credibility, reducing the risk of vacancy or lease default.

3) Ollie’s Bargain Outlet NNN Property Investment: Low management responsibility

Under ground lease and NNN agreements, Ollie’s is responsible for property maintenance, insurance, taxes, and operating expenses, allowing landlords to enjoy passive ownership.

4) Ollie’s Bargain Outlet NNN Property Investment: Favorable lease terms

Ollie’s leases typically feature long initial terms with built-in rent escalations, providing income stability and potential rental growth over time.

5) Ollie’s Bargain Outlet NNN Property Investment: Real estate value

Ollie’s stores are commonly located in high-traffic retail corridors and power centers, supporting strong underlying real estate value and potential long-term appreciation.

Pros and Cons of Ollie’s Bargain Outlet Ground Lease and NNN Lease Investment

Pros:

Stable income is supported by Ollie’s value-focused retail model, which tends to perform well during both strong and challenging economic conditions.
Ollie’s status as a publicly traded and well-established national retailer reduces vacancy risk and the likelihood of lease default.
Ground lease and NNN structures offer minimal management responsibility, as Ollie’s typically covers taxes, insurance, maintenance, and operating expenses.
Long-term lease agreements often include rent escalations, providing income stability and potential growth over time.

Cons:

Lease renewal risk exists at the end of the lease term, depending on Ollie’s long-term strategy for the specific location.
Investment performance is dependent on Ollie’s operational success, merchandising strategy, and financial health.
Competition from other discount and off-price retailers can impact store-level performance in certain markets.
Investors have limited control over property use, operations, or redevelopment during the lease term.
Broader economic conditions and real estate market fluctuations may affect property value and exit timing.

Thorough due diligence—focused on location quality, lease structure, rent escalations, and tenant strength—is essential. Investors should seek guidance from real estate professionals and financial advisors to ensure alignment with their investment objectives and risk tolerance.

MarketWatch: Ollie’s Bargain Outlet