Advance Auto Parts Tenant Overview


  • Corporate backed leases
  • Footprint allows for adaptive reuse


  • NN leases make landlord responsible for roof and structure
  • Flat rental rates, varying lease structure

Earnings Highlights

Earnings Summary
  • Q1 net sales increased 1.3% to $3.4 billion; Comparable store sales decreased 0.4%
  • Operating income of $90 million; Operating income margin of 2.6%

Tenant Description

Advance Auto Parts is a leading automotive aftermarket parts provider in North America.

Net lease assets occupied by Advance Auto Parts fill a highly desired price range, generally trading between $1 - $2 million. Additionally, the prototypical Advance Auto store lends itself to a wide array of reuses in the unlikely event of a vacancy. Advance Auto Parts prefers 0.75 - 1.25 acres of land for their 7,000 square foot rectangular retail buildings. Most new Advance Auto Parts stores are 6,000 to 7,000 square feet.

Lease agreements are typically 15-year NN leases, however they can vary between 5 and 15 years in length. Specific lease terms and landlord obligations vary, but under the NN lease, the landlord is responsible for maintenance of the roof and structure. Alternatively, some sites have been leased on an absolute NNN basis, with no landlord responsibility. The difference between a NN and NNN Advance Auto lease is usually offset by rent escalations. It is common for a NN lease to include rental increases in lease year 11, while the NNN leases are based on a flat rental rate over the entire primary lease term.

Advanced Auto Parts was founded in 1929 and is headquartered in Roanoke, Virginia. Their operation consists of 4,687 Advance Auto Parts branded stores, and are generally located in freestanding buildings with a heavy focus on serving "do-it-for-me", commercial, and "do-it-yourself", customers as well as independently-owned operators. These stores carry a wide variety of products serving an aftermarket auto part needs for both domestic and import vehicles.

Advance Auto Parts plans to open and operate stores in both large, densely-populated markets and small, less densely-populated areas. Advance Auto which consists of "Advance Auto Parts," "Carquest," and "Worldpac" have increased their store count significantly. Growing from 2,872 stores in 2005 to 4,687 locations in 2023. They intend to continue to increase the number of their stores and expand the markets they serve as part of their growth strategy.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $1,718,723
NOI $105,202
$/Square Foot $246-$286
Building SF 6,000 - 7.000
Lot Size 0.75 - 1.25 Acres
Lease Term 5 - 15 Years
Escalations Varies
Stock Symbol AAP
Credit Rating
Moody's Baa3
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Columbus, OH 5.21%
Richmond, VA 5.75%
Morgantown, KY 6.33%