O'Reilly Auto Part Sales: Why These Structures Make the Best NNN Properties Despite Their Unpopular Nature
Triple net or NNN properties are popular amongst most investors in the United States. These structures usually accompany low-risk and substantial profit margins, regardless of economic downturns. With this market becoming saturated by the day, you'll need something that stands out. While most investors opt for flashy options such as convenience stores, gas stations, and medical clinics, there's a hidden gem in the MIX.
To save you the hassle of racking your brains, they're known as — auto parts stores. Although some investors know their profitability, it remains a secret until you dig DEEPER.
This sector has enjoyed steady growth in recent years due to the number of aging cars on US highways. As it stands, most individuals in the United States have 11 years or older vehicles. With automobiles requiring services at one point or another, the average auto parts store is making solid revenue as repair costs skyrocket daily.
Would you like to bolster your investment portfolio with an auto parts store that has a proven track record since inception? Then you might want to look at the offerings of O'Reilly Auto Parts sales outlets.
In this article, we'll be taking a peek at why auto parts stores do so well, irrespective of economic conditions. Additionally, the following lines will get you acclimated with factors to consider when investing in your first auto part store.
While you can find a comprehensive listing of O'Reilly auto parts sales at NNN Deal Finder, let's get you started with the BASICS.
Economic Downturns and Auto Parts Stores: Why These NNN Structures don't feel the Negatives
When discussing properties that feature a triple net or NNN lease, it's pertinent to understand that most forms are likely to experience an adverse shift in proceedings when the economy bites hard.
Although sourcing credit-worthy tenants mitigate this risk, not all NNN properties can stand economic fluctuations. However, one thing is constant: people repairing their automobiles.
Auto parts, oil, and tire change stores are an integral part of the automotive market; there's always room to make profits as people must repair their vehicles when needed. Although some customers are turning towards the "solo" path, they'll still need to make purchases regardless. Consequently, we see auto parts stores diversify their services to suit the DIY (Do It Yourself) market.
These stores do well during hard times as patrons pay a subsidized self-repair fee. Due to the recession-proof nature of these ventures, looking towards an O'Reilly Auto Parts sales store might be what you need to eke out huge profits.
Factors to Consider Before Investing in the Auto Parts Business
Now that you're aware that auto parts stores are great investments, considering several factors before you make that auto parts store acquisition can is vital. Since information on these structures is minimal, you have to get up to speed with these considerations:
Location
In real estate, location plays a significant role in the long-term success of an investment. Therefore, to seek out an O'Reilly Auto Parts NNN for sale that's profitable in the long run, it'll be best if you could secure a variation near:
- Urban centers
- Industrial markets
- Residential areas
- Shopping malls
- Business developing regions
While we recommend urban communities, running a background check on the size, development, and nearby traffic is essential. When you've validated these issues, and they meet your investment goals, your chances of having a high influx of patrons as you commence business proceedings rank high.
Competition
Before you invest in an O'Reilly Auto Parts sales store, you have to consider the proximity of other businesses offering similar services to yours.
For context, you can go around your chosen location to establish what franchises are available in town and what entities dominate larger cities. Also, it'll do you a lot of good to find out what these entities are doing to lure customers.
With this insight, you can decide whether setting up an auto parts store within that vicinity will be worth it in the long run. If you're unsure, it might be time to consider another region entirely.
Store Size
With so many listings featuring decent-looking auto parts stores, it's crucial to find an outlet with a large interior. Since newer and older vehicles have varying repair procedures, you'll need space to attend to these needs without worrying about "clutter."
That said, it's important to consider the parking lot size. Having a huge parking space is essential as this segment of auto parts store is where prospective patrons park to resolve engine error codes and engage in self-repair. Since the parking lot acts as a waiting area for some, you'll want to ensure that there's space for incoming vehicles.
Why O'Reilly Auto Parts NNN Properties?
There are many reasons why investors are opting for O'Reilly Auto Parts' triple net leases. First off, this entity has a reputable track record due to its vast array of products and services.
Offering OEM and aftermarket maintenance accessories and equipment, the demand for services from the stables of O'Reilly Auto Parts has increased in recent years. To meet these needs efficiently, they've gone on to improve their distribution hubs across the United States.
Commencing operations in 1957 with one store located in Springfield, Missouri, there are over 4,700 O'Reilly Auto Parts stores across 45 states in the US currently. Over the years, this entity has solidified its stance in providing:
- DIY (Do It Yourself) Services
- DIFM (Do It For Me) Services
- PSP (Pro Service Providers)
Note: 42% of total sales stem from the PSP (Pro Service Providers) segment.
With aging vehicles on the motorways, O'Reilly Auto Parts will remain in business for the long haul. However, due to the high demand for their stores, it's challenging to find structures under the $2,000,000 mark. Regardless, they're exceptions to this provision.
Major Takeaway
While convenience and drug stores are making waves in the NNN market, we've discovered a hidden gem in the automotive segment — auto parts stores. With these structures, investors are likely to make decent profits regardless of economic downturns.
Although the pros attached to auto parts ventures might sound exciting, it's essential to sieve out the suitable alternative. By incorporating the tips mentioned above, you can invest in an O'Reilly Auto Parts outlet that'll stand the test of time.
Albeit expensive, getting budget-friendly variations is possible when you view listings available at buynnnproperties.com. The time is NOW!