Property type
Hard discount grocer properties house value-focused grocery chains that have revolutionized food retail with efficient operations and low prices. These properties serve budget-conscious consumers with essential groceries at significant discounts compared to traditional supermarkets. In Austin, TX, hard discount grocers have expanded rapidly to serve the region's growing population.
Hard discount grocer properties typically feature NNN lease structures with strong international or national operators. The essential nature of grocery shopping and the value proposition of discount formats provides stable income for 1031 exchange investors.
Investment benefits
Market data
Typical Cap Rate
5.0% - 6.0%
Typical Lease Term
15-20 years
Common Tenants
ALDI, Lidl, Grocery Outlet
Why are hard discount grocers popular 1031 exchange investments?
Hard discount grocers are popular because they provide essential grocery services at value prices, attracting broad consumer appeal. Strong operators like ALDI offer investment-grade credit and continue aggressive expansion, creating acquisition opportunities.
How do hard discount grocers compare to traditional supermarkets?
Hard discount grocers operate smaller, more efficient stores with limited product selection at lower prices. This format has proven successful and continues taking market share from traditional supermarkets, supporting strong tenant performance and stable rent.
What is the expansion outlook for hard discount grocers?
Hard discount grocers continue rapid expansion across the United States. ALDI plans to open hundreds of new stores, while Lidl expands on the East Coast. This expansion creates new acquisition opportunities for 1031 exchange investors.
Related services
NNN Replacement Property Identification
Curated shortlists of absolute and regular NNN assets where credit tenants absorb taxes, insurance, and upkeep.
View serviceSingle Tenant Retail Acquisition Briefs
Asset briefs for quick service restaurant, pharmacy, dollar, and fuel operators.
View serviceMultifamily Reinvestment Briefs
Bridge multifamily sale proceeds into stable replacement income.
View serviceIndustrial and Flex Net Lease Targeting
Source logistics, flex, and last mile industrial with tenant maintenance coverage.
View service