Net Lease Industry

Lowest
Cap Rate

4.03%

Lowest cap rate over past 24 months

Average
Cap Rate

4.98%

12 mo avg with 5+ yr lease term

Overview
Tractor Supply Co. offers various agricultural supplies, work-wear and casual clothes, foot-wear, home and gardening products, along with various animal care needs and vehicle accessories. A highly valued brand experiencing sales growth over the past decade. Standard building dimensions are typically about 15,500 sq. ft. for retail purposes. This is roughly the same for outdoor-based product areas. Almost all of their properties are leased, with primary terms of ten to fifteen years on average and 2-4 options to renew at 5 years each.
Average Property & Lease
Average Sale Price $2,250,000 - $7,000,000
Average NOI $150,000 - $420,000
Building SF 20,000
Lease Term 15 Years
Escalations 5 - 10% Every 5 Years
Stock Symbol NASDAQ:TSCO
CREDIT RATING
S&P

N/A
Moody's

N/A
TENANT DESCRIPTION

Back in 1938, a small mail-order company was selling tractor parts and accessories for the average farming family in the United States. It is no surprise that the heartland of America and its rural lifestyle has embraced their retail stores as part of the fabric of American culture.

At present, they have corporate headquarters based in Brentwood, TN, and are publically traded under ‘TSCO’ on NASDAQ. With yearly sales revenue approaching nearly seven billion dollars, Tractor Supply Co., is the biggest retail carrier of various mechanical tractor parts and tools, along with power equipment, generators, welders, landscaping products, to animal and pet supplies and apparel.

Located mostly in smaller towns and suburban areas, they have operations currently in 49 states, with over sixteen hundred retail locations and twenty four thousand employees who endeavor to provide family-oriented customer service. In fact, many farmers, equestrians, and tradesmen can be found among their ranks.

PROS
  • Superb yields
  • Initial term rent increases are common
  • Extensions possible for 5 years each
CONS
  • Landlord obligations with NN leasing
  • Smaller towns and populations
COMPANY QUICK STATS
Founded 1938
Headquarters Brentwood, Tennessee
Number of Locations 2,003
Revenue $12.731 B
Company Website https://tractorsupply.com
Key Principal Hal Lawton
NEWSLETTER SIGNUP

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