Property type

Auto Parts Retail

Auto parts retail properties house national chains that serve the automotive aftermarket with parts, accessories, and services. These properties benefit from the large and growing vehicle fleet in the United States, including the expanding Austin, TX metropolitan area. Auto parts retailers serve both do-it-yourself consumers and professional mechanics.

Auto parts retail properties typically feature NNN lease structures with national credit tenants. The essential nature of vehicle maintenance and repair drives consistent demand, making these properties attractive for 1031 exchange investors seeking stable income.

Investment benefits

Why Auto Parts Retail for 1031 Exchange

1Essential automotive services
2National credit tenants
3Large vehicle fleet drives demand
4DIY and professional customer base
5Recession-resistant income

Market data

Auto Parts Retail Market Overview

Typical Cap Rate

5.5% - 6.5%

Typical Lease Term

10-15 years

Common Tenants

AutoZone, O'Reilly Auto Parts, Advance Auto Parts, NAPA

Are auto parts stores good 1031 exchange investments?

Yes, auto parts stores are excellent 1031 exchange investments due to essential automotive service needs, strong national tenants, and recession-resistant demand. Vehicle maintenance is a necessity regardless of economic conditions.

How has the auto parts industry performed?

The auto parts industry has shown consistent growth as the average vehicle age in the U.S. continues to increase. Older vehicles require more maintenance and repairs, driving demand for auto parts and services at retail locations.

What lease structures are typical for auto parts properties?

Auto parts retail properties typically feature NNN lease structures with 10-15 year initial terms. Major chains like AutoZone and O'Reilly provide corporate guarantees, offering strong credit backing for lease obligations.

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