Net Lease Investors Are Poised To Benefit From ALDI's Big Expansion Plans

Discount grocer ALDI has been on an expansion tear as of late⁠—and that’s creating big opportunities for net lease investors. 

“With its long-term leases in the 15- to 20-year range, zero landlord responsibilities, typical 5.0 percent rent increases every five years, and well-located real estate, ALDI has become extremely attractive to net lease investors,” says Tom Georges, a Director in Stan Johnson Company’s New York office. “With its rapid expansion, there are significant opportunities for investors to acquire newly built ALDI-tenanted properties. Just as a dollar store can enter a market that a Walmart or other big-box retailer cannot, due to lower population density, ALDI can be successful because of its smaller format and low-cost business model.”