Hobby Lobby TENANT OVERVIEW
Last Updated: September 9, 2016
- National name brand recognition
- Located in prime locations
- Leases are landlord-favorable with limited landlord responsibilities
- Private company
- Non-investment grade
- Due to size, harder to lease property if the tenant leaves
Hobby Lobby is an industry leader in the arts and crafts business, and is a highly sought after brand. While they are not currently rated, they are universally regarded as a strong company and a great tenant. The company has excellent corporate financial fundamentals and is consistently listed on Forbes list of America's Largest Private Companies. Generally, Hobby Lobby stores are located in a prime location in a dense and dynamic retail corridor.
Hobby Lobby is attractive to investors because they typically have an initial term of 15 years with up to three (3), five-year renewal options. In addition, there can be rent increases throughout the base lease term and option periods as well. Specific lease terms and landlord obligations vary, but generally the landlord is not responsible for the property.
Hobby Lobby Stores, Inc., located in Oklahoma City, OK, started as an extension of Greco Products, a miniature picture frames company founded in a garage by David Green in 1970. Hobby Lobby officially began operation on August 3, 1972 with a mere 300 square feet of retail space, and has been growing ever since. Hobby Lobby prides themselves on their Christian foundations and morals, giving back to the local community and various charities the Green Family has chosen. Hobby Lobby has two affiliated companies; Mardel, a Christian bookstore and education supply store, and Hemispheres, a fine furnishings retailer.
Today, Hobby Lobby has more than 750 stores across the nation that average 55,000 square feet and offer more than 67,000 crafting and home decor products.
Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
|Average Sale Price
||49,000 - 75,000
||5 - 15 Years
||In Option Periods
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
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