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REI

Interested in selling your REI NNN property or REI 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 REI NNN property for sale or REI ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the clarity needed to make informed decisions regarding the sale of your REI NNN property or the inclusion of a REI ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market REI properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of 2025, REI operates approximately 180+ retail stores across the United States. REI is a leading specialty outdoor retailer focused on premium outdoor gear, apparel, and experiences.

REI operates under its parent entity, Recreational Equipment, Inc., and also supports its retail network through:

  • Regional distribution centers

  • Adventure travel services (REI Adventures)

  • Online and omnichannel platforms

All REI stores are company-operated, with no franchised locations.

Revenue and income

REI is a privately held consumer cooperative, owned by its member base, and does not disclose quarterly earnings like public companies. However:

  • Annual revenue is estimated in the multi-billion-dollar range

  • REI consistently ranks among the top outdoor specialty retailers in the U.S.

  • Revenue is driven by:

    • Outdoor apparel and footwear

    • Camping, hiking, cycling, climbing, and snow sports equipment

    • Private-label REI Co-op branded products

    • Membership fees and services

REI’s member-owned structure supports strong brand loyalty and repeat purchasing behavior.

Future plans

REI continues to focus on measured growth, omnichannel retail, and experiential outdoor engagement through the following strategies:

1. Store modernization and format optimization

REI is upgrading many existing locations with:

  • Improved store layouts

  • Expanded product testing areas

  • Enhanced customer experience zones

  • Sustainability-focused design elements

The company is also evaluating store size optimization, favoring efficient footprints in high-performing markets.

2. Selective new store openings

Rather than aggressive expansion, REI pursues new stores in:

  • Outdoor-oriented metro and suburban markets

  • Regions with strong participation in hiking, cycling, skiing, and camping

  • Markets aligned with its member demographics

REI prioritizes quality locations over rapid store count growth.

3. Strengthening the REI Co-op membership model

REI continues to invest in:

  • Growing its paid lifetime membership base

  • Exclusive member rewards and dividends

  • Member-only pricing and events

This model reinforces long-term customer retention and brand loyalty.

4. Digital and omnichannel enhancements

REI investments include:

  • E-commerce and mobile platform improvements

  • Buy Online, Pick Up In Store (BOPIS)

  • Inventory visibility across channels

  • Online classes, trip planning, and outdoor education

5. Sustainability and community engagement

REI remains an industry leader in:

  • Environmental stewardship initiatives

  • Sustainable sourcing and circular economy programs

  • Community partnerships and outdoor advocacy

These efforts strengthen REI’s brand equity and long-term relevance.

Corporate vs. franchise

REI is not a franchise.

  • All stores are corporate-owned and operated

  • Operates as a consumer cooperative owned by its members

  • Centralized control over merchandising, pricing, store operations, and branding

This structure ensures consistent execution and strong brand standards nationwide.

Corporate vs. franchise

REI is not a franchise.

  • All stores are corporate-owned and operated

  • Operates as a consumer cooperative owned by its members

  • Centralized control over merchandising, pricing, store operations, and branding

This structure ensures consistent execution and strong brand standards nationwide.

Additional information about REI properties

  • Founded: 1938 in Seattle, Washington

  • Headquarters: Kent, Washington, USA

REI stores typically feature:

  • Medium-to-large format specialty retail layouts

  • High-quality buildouts with strong architectural design

  • Locations in lifestyle centers, urban mixed-use projects, and strong suburban retail corridors

  • Long-term leases in many investment-grade retail properties

REI is widely regarded as a high-quality, mission-driven retail tenant, benefiting from strong customer loyalty, premium positioning, and long-term demand for outdoor recreation.

REI History

REI (Recreational Equipment, Inc.) was founded in 1938 in Seattle, Washington, by Lloyd and Mary Anderson as a member-owned cooperative created to make quality outdoor gear more accessible to outdoor enthusiasts. From the beginning, REI differentiated itself by focusing on high-quality equipment, knowledgeable staff, and a cooperative model that emphasized member value and long-term loyalty.

Through the 1970s, 1980s, and 1990s, REI expanded nationally by opening company-owned stores and broadening its product offerings across camping, hiking, cycling, climbing, snow sports, and outdoor apparel. The co-op model, combined with premium private-label products and strong environmental values, helped establish REI as one of the most trusted names in the outdoor retail industry.

Today, REI operates approximately 180+ locations across the United States. Headquartered in Kent, Washington, the company continues to invest in omnichannel retail, store experience enhancements, sustainability initiatives, and its growing membership base, maintaining its position as a leading specialty outdoor retailer and cooperative.

Why Invest in Ground Lease and NNN Lease of REI?

Investing in REI (Recreational Equipment, Inc.) ground lease or triple net (NNN) lease properties offers attractive advantages due to REI’s strong brand equity, loyal membership base, and premium positioning in the outdoor retail sector. REI is widely regarded as a high-quality, mission-driven retail tenant with long-term staying power.

1) REI NNN Property Investment: Stable Income

REI benefits from a member-owned cooperative model with millions of lifetime members who demonstrate strong brand loyalty and repeat purchasing behavior. Its diversified revenue streams—outdoor apparel, footwear, equipment, private-label products, and services—support consistent store performance, making REI locations reliable income-producing assets for NNN investors.

2) REI NNN Property Investment: Established, Trusted Tenant

Founded in 1938, REI has more than 85 years of operating history and operates approximately 180+ company-owned locations across the United States. Its long-standing reputation, premium brand positioning, and loyal customer base help reduce vacancy risk and support long-term tenant stability for landlords.

3) REI NNN Property Investment: Low Management Responsibility

Most REI investment properties are structured with NNN or NNN-like lease terms, under which the tenant is typically responsible for property taxes, insurance, and maintenance. This structure allows investors to benefit from passive, low-management ownership with predictable cash flow.

4) REI NNN Property Investment: Favorable Long-Term Lease Terms

REI commonly executes long-term leases, often with initial terms of 15–20 years and multiple renewal options. Leases frequently include contractual rent escalations, helping investors achieve steady income growth over the life of the investment.

5) REI NNN Property Investment: Strong Real Estate Fundamentals

REI stores are typically located in high-quality lifestyle centers, urban mixed-use developments, and strong suburban retail corridors that align with outdoor-oriented demographics. The company’s attractive store designs, strong traffic drivers, and durable locations enhance long-term real estate value and support future re-tenanting or redevelopment potential if needed.

Pros and Cons of REI Ground Lease and NNN Lease Investment

Pros:

  1. Stable income supported by a nationally recognized outdoor retailer with a loyal, member-owned customer base and strong brand equity.

  2. Long-standing brand founded in 1938 with approximately 180+ company-owned locations, helping reduce vacancy risk and support long-term tenant stability.

  3. Minimal landlord responsibilities under typical NNN or NNN-like lease structures, as REI generally handles taxes, insurance, and maintenance.

  4. Long-term lease agreements (often 15–20 years) with renewal options and contractual rent escalations that support predictable income growth.

  5. High-quality real estate locations in lifestyle centers, mixed-use developments, and strong suburban retail corridors enhance long-term property value and tenant performance.

Cons:

  1. Lease renewal risk if REI elects not to extend the lease at the end of the primary term, potentially leading to downtime or re-tenanting costs.
  2. Exposure to specialty retail trends, including shifts in consumer spending on discretionary outdoor goods and competition from direct-to-consumer brands.
  3. Limited landlord control due to NNN or ground lease structures, restricting influence over store operations or future repositioning.
  4. Premium buildout considerations, as REI stores often feature specialized layouts that may require capital investment to re-tenant.
  5. Property values may fluctuate with broader retail real estate cycles, interest rate changes, and regional market conditions.

Just like any NNN investment, careful evaluation of site demographics, lease structure, tenant credit strength, and long-term market demand is essential when considering an REI property. Consulting experienced NNN real estate professionals and financial advisors can help ensure the investment aligns with your objectives, risk tolerance, and 1031 exchange strategy.

MarketWatch: REI

MarketWatch: REI

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