Net Lease Industry

Lowest
Cap Rate

4.25%

Lowest cap rate over past 24 months

Average
Cap Rate

5.27%

12 mo avg with 5+ yr lease term


Overview
When looking into the home improvement and paint industry, Sherwin-Williams has been a steady and high demand net leasing investment opportunity. Strong credit backing with low pricing tends to create positive forecasts when compared against market competition.
Average Property & Lease
Average Sale Price $1,500,000 - $3,500,000
Average NOI $75,000 - $160,000
Building SF 5,000
Lease Term 10 Years
Escalations 10% in Options
Stock Symbol NYSE:SHW
CREDIT RATING
S&P

A

Moody's

Baa2

TENANT DESCRIPTION

Based in Cleveland, OH, the historic Sherwin-Williams Company originated back in 1886 with Henry Sherwin and Edward Williams. Manufacturing a variety of high quality retail and home improvement products under multiple brands, their main brand is offered solely in over 3,800 paint store locations in the United States. Other familiar names include Thompson’s®, Krylon®, Dutch Boy®, and others.

Currently, Sherwin-Williams operates internationally with a major focus in North and South America, serving both residential and commercial with a wide assortment of painting and sealant products. They continue to pursue manufacturing, distributing, and developing their core product lines.

PROS
  • Company guarantee
  • Lower pricing
  • Tenant investor-graded
CONS
  • Leases shorter in length
  • NN leases may create landlord accountability
COMPANY QUICK STATS
Founded 1866
Headquarters Cleveland, Ohio
Number of Locations 4,859
Revenue $19.94 B
Company Website https://www.sherwin-williams.com
Key Principal John G. Morikis