Bridgestone/Firestone Tenant Overview
- Rental increases during primary term
- Investment grade credit
- Difficult to retenant
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||$3,800,000|
|$/Square Foot||$475 - $540|
|Building SF||7,000 - 8,000|
|Lot Size||1.00 acre|
|Flower Mound, TX||5.10%|