Bridgestone/Firestone TENANT OVERVIEW


Pros

  • Rental increases during primary term
  • Investment grade credit

Cons

  • Difficult to retenant

Tenant Description

Bridgestone, parent company of Firestone, is one of the largest tire retailers in the world.

Bridgestone makes an attractive net lease tenant because they operate in a business that is relatively internet proof, have strong credit, and have rental increases during the lease term. The tire and auto service industry is in a strong position to excel into the future. While cars may change, the need for tires and service will not. The strength of credit is an appealing aspect for investors. S&P rates Bridgestone Corp. ‘A’, indicating that Bridgestone is extremely likely to meet an outstanding liabilities. The rental increases during the primary term, in most Bridgestone leases provides investors with a return that grows while being a hedge against inflation.

Bridgestone was founded in 1931 by Shojiro Ishibashi in Japan. Bridgestone expanded to become Japan’s largest tire manufacturer. In 1988, Bridgestone acquired Firestone Tire & Rubber Company to transform into one of the largest tire and rubber companies in the world.

Average Cap Rate
5.73%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,557,333
NOI $146,535
$/Square Foot $320 - $365
Building SF 7,000 - 8,000
Lot Size 1.00 acre
Lease Term Varies
Escalations Varies
Stock Symbol BRDCF
Credit Rating
S&P A
Moody's A2
Average Cap Rate Trend
7.36%
2016
5.43%
2017
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
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