Auto parts, repair, and care locations have seen investment volume decrease over the last 12 months, according to Avison Young’s Net Lease Group.
Cap rates have increased over the same period. Average cap rates over the trailing 12 months for single-tenant net lease property have been 6.28%. The automotive average cap rate in contrast was 6.23%, so a five-basis-point lower position.
Automotive has developed “strong immunity” to e-commerce disruption. Although it is responsive to business trends, many members of the public depend on car-based transportation. That includes repairs and oil changes that can’t be done virtually. Parts and maintenance products are available online but many people need assistance to identify exactly what they need, or they need something and can’t wait for the order and delivery process.
Recommended For You
Additionally, rising prices of both used and new vehicles and economic instability push people to maintain existing transportation. That makes automotive-related businesses more of a must category than an optional one.
Some of the typical cap rates by automotive companies are 5.34% for AutoZone; 6.57% for Advance Auto Parts; 6.07% for O’Reilly’s Auto Parts; 6.11% for Jiffy Lube; 6.02% for Take 5 Oil; and 5.68% for Valvoline.
Cap rates for auto retailers differ by geographic region. In New England, it was 6.20%; 6.54% in the Mid-Atlantic; 6.05% in the Southeast; 5.79% in Texas; 6.26%; 6.25% in the Midwest; and 5.69% in the West.
Ranked by visitors, AutoZone had 254.89 million; O’Reilly Auto Parts, 186.84 million; Advance Auto Parts, 106.18 million; Discount Tire, 56.84 million; NAPA Auto Parts, 53.38 million; Valvoline Instant Oil Change, 50.61 million; Jiffy Lube, 37.31 million; Firestone Complete Auto Care, 33.48%; and Take 5 Oil Change, 24.71 million.
As of December 5, the number of active listings for car-related properties was 240 with an average asking price of $1.86 million, an average asking cap rate of 6.09%, and an average remaining term of 11.55 years.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
