Goodwill TENANT OVERVIEW


Pros

  • Typically feature higher cap rates
  • Increases in the primary term
  • Easy to re-lease

Cons

  • Leases often require landlord responsibilities
  • Reliant on donations

Tenant Description

Goodwill is a nonprofit organization who help people secure employment.

Goodwill makes a great net lease tenant because of the strong guarantee. Goodwill has multiple sources of revenue to support their mission, retail sales, contract work, government grants, corporate and foundation grants, and individual gifts. The Goodwill retail locations sell donated clothing and household items to help support their training and other services. In 2017, these sales made up the largest portion of Goodwill’s revenue, $4.29 billion. These have helped Goodwill reach #14 on the Forbes 100 Largest US Charities. The high returns and minimal landlord responsibilities for Goodwill leased property add to the attraction for investors.

Goodwill strives to meet the needs of all job seekers. This includes programs for youth, seniors, veterans, and people with disabilities, criminal backgrounds, and other specialized needs. In 2017, Goodwill helped over 288,000 placed into employment. Goodwill has been ranked as the #4 brand doing the most good in the world by Enso on the 2018 Brand World Value Index, behind only St Jude Children’s Hospital, the Red Cross, and the Salvation Army.

Average Cap Rate
6.69%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $4,670,296
NOI $312,443
$/Square Foot $225 - $375
Building SF 12,000 - 20,000
Lot Size 1.00 - 1.5 Acres
Lease Term 15 Years
Escalations Varies
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
6.99%
2017
6.35%
2018
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Castle Rock, CO 5.95%
Berkeley, CA 5.00%
Clinton, MD 6.60%