Early Extension – AutoZone exercised its renewal option approximately four years early, extending the lease by an additional 10 years while preserving the scheduled 10% rent increases every five years. Early renewals of this nature are uncommon and reflect the tenant’s long-term commitment to this location.
Below Market Rent w/ Strong Growth – The tenant is currently paying just $16.21 PSF, which is roughly 35% below asking rents in the surrounding trade area. At the same time, the lease provides strong contractual income growth with 10% rent increases in 2030 and 2035 that continues throughout the option periods, offering meaningful upside and long-term inflation protection.
22+ Year Operating History – AutoZone has successfully operated from this location since 2004. With the recent lease extension, the company has committed to this site for nearly four decades, underscoring the property’s strategic importance within its store network.
Rare Parent Company Guaranty: The lease is guaranteed by AutoZone, Inc. (NYSE: AZO), a BBB-rated, investment-grade company with a market capitalization exceeding $51 billion. The company’s stock has appreciated approximately 120% over the past five years, reflecting its financial strength and consistent operating performance.
New Roof Membrane: Ownership installed a new Duro-Last roof membrane in 2021, backed by a transferable warranty through March 4, 2041, significantly reducing near-term capital expenditure risk for future ownership.
Attractive Fee Simple Ownership – Unlike many long-term AutoZone investments structured as ground leases, this offering includes ownership of both the land and improvements. As a result, investors may benefit from depreciation of the building and qualifying improvements, subject to their CPA’s advice.
2nd Highest Population Growth in Country: According to the U.S. Census Bureau, the Houston-The Woodlands-Sugar Land MSA recorded the second-largest population increase in the nation between 2023 and 2024, reflecting the region’s strong economy, business-friendly climate, and continued in-migration.
Very Strong Demographics: More than 350,000 residents live within a five-mile radius, with average household incomes of approximately $132,000, supporting a deep consumer base for the surrounding retail corridor.
Major Retail Corridor: The property is positioned along Spencer Highway (37,000+ VPD) near Highway 6 (50,000+ VPD) and is surrounded by major national retailers including Walmart, Target, Kroger, Home Depot, and Lowe’s. Langham Creek High School, with more than 3,000 students, is located directly across the street, providing additional daily traffic and consumer activity.

Navigation Menu

AutoZone

Key Information

Highlights

Photos

Location

Agents

Broker of Record

Patrick Graham