Bridgestone/Firestone Tenant Overview
Pros
- Rental increases during primary term
- Investment grade credit
Cons
- Difficult to retenant
Tenant Description
Bridgestone, parent company of Firestone, is one of the largest tire retailers in the world.
Bridgestone makes an attractive net lease tenant because they operate in a business that is relatively internet proof, has strong credit, and have rental increases during the lease term. The tire and auto service industry is in a strong position to excel into the future. While cars may change, the need for tires and service will not. The strength of credit is an appealing aspect for investors. S&P rates Bridgestone Corp. ‘A’, indicating that Bridgestone is extremely likely to meet an outstanding liabilities. The rental increases during the primary term, in most Bridgestone leases provide investors with a return that grows while being a hedge against inflation.
Bridgestone was founded in 1931 by Shojiro Ishibashi in Japan. Bridgestone expanded to become Japan’s largest tire manufacturer. In 1988, Bridgestone acquired Firestone Tire & Rubber Company to transform into one of the largest tire and rubber companies in the world.
| Average Sale Price | $3,800,000 |
| NOI | $185,000 |
| $/Square Foot | $475 - $540 |
| Building SF | 7,000 - 8,000 |
| Lot Size | 1.00 acre |
| Lease Term | Varies |
| Escalations | Varies |
| Stock Symbol | BRDCF |
| Eads, TN | 4.25% |
| Flower Mound, TX | 5.10% |
| Lombard, IL | 6.00% |
