Net Lease Petco Property Profile and Cap Rates

Net Lease Petco – Typical Property and Lease Terms

 

Price Range:	$3M - $6M
Cap Rate:	6.25% - 6.75%
Net Income:	$225,000 - $425,000
Price Per foot:	$185 PSF - $265 PSF
Building Size:	18,500 SF - 25,000 SF
Lot Size:	2.5 Acres
Escalations:	Flat
Lease Term:	10 Years
Lease Type:	NN
Credit Rating:	B (S&P)

 

Tenant Company Information:

 

Petco Animal Supplies, Inc., or simply Petco, is an American pet retailer in the United States, with corporate offices in San Diego and San Antonio. Petco sells pet products and services, as well as certain types of live animals. Petco sells and holds fish, reptiles, small birds, hamsters, guinea pigs, and mice for adoption. Pet services include grooming and dog training. The company also owns the naming rights to the Petco Park baseball stadium, which is home of the San Diego Padres.

As of 2017, the company operates more than 1,500 locations across the United States and Mexico, including more than 85 Unleashed by Petco locations, which is a smaller-format neighborhood brand-launched, spa services, and an online shopping destination at petco.com.[1]

“Think Adoption First” is a company philosophy and program, which encourages pet adoption rather than the purchase of companion animals whenever possible. Petco was criticized when they were selling large exotic birds in their shops. In 2005, they signed an agreement with PETA to end the sale of large birds.[2] Petco has never sold dogs or cats, and in 2008, the company stopped selling rabbits as well

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