Net Lease Tenant Profile: Kohl's
From a net lease standpoint, Kohlís offers a credit tenant backed guarantee with long term leases (often ground leases) and rent increases. Although Kohlís is a department store Ė in the same category as J.C. Penny Ė most of their locations are free-standing. Currently, Kohlís operates stores in every U.S. State but Hawaii.
As a retailer, Kohlís claims to offer ďOff-mallĒ convenience and a combination of specialty and national brands for their customers. Kohlís also is active in remodeling their stores and states that 50% of their stores are either new or remodeled in the past 5 years. As of 2013, Kohlís leases approximately 65% of their stores while owning 35%. As of February 2013, Kohlís was rated as Americaís second favorite retail chain by Market Force Information and #1 in ďCustomer Loyalty Engagement IndexĒ by Brand Keys.
- Lease usually includes increases
- Investment grade credit tenant
- Corporate Guarantees
- Long term leases
- High price point
- Due to size, harder to lease property if the tenant leaves
- Current trends point away from large scale retail stores
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