Hobby Lobby is an industry leader in the arts and craftsbusiness, and is a highly sought after brand. While they are notcurrently rated they are universally regarded as strong company anda great tenant. Lease agreements can vary between 5 and 15 years inlength, however a 10-year NNN term seems to be most common HobbyLobby lease structure. Hobby Lobby is a strong credit tenant. Thecompany has excellent corporate financial fundamentals and isconsistently listed on Forbes list of America's Largest PrivateCompanies. Generally, Hobby Lobby stores are located in a primelocation in a dense and dynamic retail corridor.
Hobby lobby is attractive to investors because they typicallyhave an initial term of 15 years with up to three five-year renewaloptions. In addition, there can be rent increases throughout thebase lease term and option periods as well. Specific lease termsand landlord obligations vary, but generally the landlord is notresponsible for the property.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
