Kohl’s TENANT OVERVIEW


Net Lease Advisor Tenant Kohls

Pros

  • Lease usually includes increases
  • Investment grade credit tenant
  • Corporate guarantees
  • Long term leases

Cons

  • High price point
  • Due to size, harder to lease property if the tenant leaves
  • Current trends point away from large scale retail stores

Tenant Description

Kohl's Corporation is an American department store chain headquartered in the Milwaukee suburb of Menomonee Falls, Wisconsin. Kohl's offers a credit tenant backed guarantee with long term leases (often ground leases) and rent increases. Although Kohl's is a department store, in the same category as J.C. Penny, most of their locations are free-standing. Currently, Kohl's operates stores in every US state except Hawaii.

As a retailer, Kohl's claims to offer "Off-mall" convenience and a combination of specialty and national brands for their customers. Operating 1,154 stores, Kohl's feature nationally recognized brand-name merchandise, exclusive labels, and private-branded goods, virtually the same merchandise mix as traditional department stores. The stores sell a variety of goods, such as apparel, shoes, and accessories for women, children and men, and home products.

Average Cap Rate
6.31%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $11,769,816
NOI $733,709
$/Square Foot $116
Building SF 50,000 - 100,000
Lot Size 5 - 10 Acres
Lease Term 20+ Years
Escalations In Option Periods
Stock Symbol KSS
Credit Rating
S&P BBB
Moody's Baa2
Average Cap Rate Trend
5.75%
2015
6.58%
2016
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Holland, MI 7.00%
Dacula, GA 6.25%