Interested in selling your PetSmart NNN property or PetSmart 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 PetSmart NNN property for sale or PetSmart 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 PetSmart NNN property or the inclusion of a PetSmart ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market PetSmart 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, PetSmart has over 1,650 stores in various places.
Revenue and income
In 2022, PetSmart’s total revenue was $7.5 billion. Net income was $300 million.
Future plans
PetSmart intends further to expand its presence in the pet retail industry. In 2023, the company plans to open numerous new stores and enhance its online offerings for pet products and services.
Corporate vs. franchise
About 80% of PetSmart stores are corporate-owned, while franchisees operate the remaining 20%. The company directly manages corporate stores, and franchisees adhere to the brand’s standards and guidelines.
Additional information PetSmart Properties
In 1986, PetSmart was established in Phoenix, Arizona, and swiftly became a premier specialty retailer dedicated to pet supplies and services. The company’s name underscores its commitment to serving both pets and their devoted owners. PetSmart holds the distinction of being the most extensive pet specialty chain in the United States.
The company’s most popular products include food, toys, and pet care services.
PetSmart is a subsidiary of BC Partners, a British private equity firm.
PetSmart History
PetSmart originated in 1986 as the PetFood Warehouse store in Phoenix, Arizona, founded by Jim and Janice Dougherty. It quickly expanded and was renamed PetSmart in 1989, offering competitive prices on pet supplies. Over the years, it grew through organic growth and acquisitions, eventually becoming the largest pet specialty retailer in the United States after acquiring Petco Animal Supplies, Inc., in 2002. Today, PetSmart operates over 1,650 stores across the U.S., Canada, and Puerto Rico, offering a wide range of pet products, services, and adoption centers.
Why Invest in Ground Lease and NNN Lease of PetSmart?
Investing in PetSmart’s ground lease and triple net (NNN) lease properties offers several compelling reasons:
1) PetSmart NNN Property Investment: Stable income
With a well-established brand and strong market presence, PetSmart provides reliable income streams. Ground and NNN leases offer predictable cash flows over the long term.
2) PetSmart NNN Property Investment: Established tenant
PetSmart’s success and recognizable brand reduce the risk of vacancy or lease default, ensuring a stable tenant for the property.
3) PetSmart 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) PetSmart NNN Property Investment: Favorable lease terms
Long lease terms with built-in rent escalations provide predictable income and potential rental growth.
5) PetSmart NNN Property Investment: Real estate value
PetSmart’s strategic locations in high-traffic areas can increase property value, offering potential capital appreciation.
Pros and Cons of PetSmart 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 PetSmart’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.