Best Buy is still the leading retailer in the United States for all things that involve electronics such as home appliances, video games, smartphones, computers and all the latest in retail technology. Their high-touch client service and expansive store networks are important components to their continued success. Their wide market reach is possible because of their online platform, physical stores and in-home service. This is one of the reasons why Best Buy store investments continue to drive revenue.
Why You Should Choose Best Buy Store Investments
Best Buy started as an audio specialty store under the name of Sound of Music and it was rebranded into Best Buy Co. Inc in 1993. It has already been established as a long-standing brand generating more profit compared to other retailers. The company kept on achieving greater heights of success over the past years, aiming to attract numerous investors by striving to widen its reach all over the globe.
If you are willing to rent Best Buy properties on a lease, they will require a minimum amount ranging from $5 million to $10 million. Based on their corporate lease agreement, they will increase the rent by 10% after every five years and its initial lease term varies from 15 years to 20 years. It’s possible that the lease term can be extended with the option to go from 20 to 40 years but this will be at the tenant’s discretion.
Best Buy generated the strongest 4th quarter revenue of $11.83 billion in almost 20 years. Most of these revenues are from online transactions that have increased at 352% from last year up to 15.6%. During the pandemic, the retailer’s digital marketing even accelerated further. They continue to think outside the box and present quality risk/reward given the company’s growing economic market share, superior profitability to peers and current valuation.
What Are Some of Best Buy’s Competitive Advantages?
Best Buy has not only survived the aftermath of the pandemic but has also emerged with highly developed experience in the market today, making it a perfect candidate for an NNN retail store investment property for sale.
It highlights reliable and efficient client experience
Customers like it when they can have access to products and services. This is why they have built a solid customer service team so customers can submit their queries on electronic products and a team of experts are there to provide fast and reliable solutions.
It offers an innovative sales service strategy
Other than selling household electronics, Best Buy aims to bridge the gap between lack of information and knowledge through a reliable support team equipped with sufficient details on various electronic brands. Consumers can easily seek expert consultations from Best Buy’s highly-qualified support team. This gives them more insight into the details of the electronic brand on sale before making an informed decision. Best Buy banks on consumer knowledge to attract more customers who are eager to learn about certain electronics before buying them.
It incorporates online and brick-and-mortar operations
It must have been a form of hindsight when Best Buy invested both in online and physical operations. On top of that, its service extends to in-house calls for clients who need extensive services such as repairs and installation. To remain relevant in its physical and online presence, Best Buy thought of a strategy that focuses more on pushing sales like investing in an extensive distribution network.
Top Reasons Why Best Buy Continue To Dominate the Retail Market
Ceo Hubert Joly transformed this once struggling electronics retailer three years ago. By focusing on Positive client experience and continued upgrade to its eCommerce platform and providing service anywhere and anytime, they were able to increase the number of online customers. With their unique market position and white merchandise assortment, they were able to attract plenty of early technology adopters. On top of the regular clients, you can also find tech junkies flocking their physical stores and experiencing the unique in-store experience. Lastly, their vendor partners use cutting-edge technology to make significant investments in retail stores. It enhances the shopping experience and showcases their latest technology updates. Through Best Buy store investments and partnerships, their interactive technology is brought to life, adding more value not only to its clients but also to its vendor partners.
Why Opt for Investment Property for Sale With Strong Potential
There’s a great chance that any freestanding businesses out there such as pharmacies, retail stores, Starbucks and even Best Buy store investments are under a triple net lease agreement.
It’s also possible that these investment properties are for sale. To sum it up, the real definition of triple net leases are net leases that require the building tenant to shoulder the cost of property insurance, property taxes and maintenance costs, hence, the three nets or NNN. Triple net leases like NNN Best Buy Stores are types of investments that generate a steady source of income for the long term while at the same time they offer stability and flexibility. These investments are relatively straightforward, easy to own and operate.
Below are top reasons why triple net investment is one of the smarter investments you can make:
- Your profits can pile up through tax deferments. Using the attractive feature of the 1031 and 1033 tax-deferred exchange code, you can use your typical gains to your advantage and make the most of your investment money. In case your property appreciates and you decide to sell it one day, you can avoid paying taxes by investing your profit into another property. This attractive feature allows you to buy larger properties and your income will continue to grow exponentially. Accumulating wealth becomes easier especially when you won’t have to pay taxes every time you make a profit.
- You will enjoy risk-free rewards. If you are looking for one of the most secure investment opportunities, then NNN leases such as Best Buy Real Estate For Sale is your best bet. This type of single-tenant lease property provides a steady and predictable return in the long run. With this feature, your tenants can become part of the franchise, allowing you to enjoy a low-risk and financially stable investment.
- Freedom from managerial obligations. Since your tenants take care of their insurance, maintenance and taxes, they are also in charge of the upkeep and other expenses that are part of managing the property. One good advantage of Best Buy store investments is that you won’t have to worry about the burden and time commitment since it is the responsibility of the tenant to manage the property.
Ready to Invest in Best Buy Lease Property?
Even after going through numerous transformations and takeovers throughout the past years, Best Buy continues to operate its numerous subsidiaries internationally. Its headquarters remain at Richfield Minnesota US, still under the supervision of Hubert Jolie, the CEO cum chairman. Not only does it provide excellent returns, but as a characteristic of NNN, it requires minimal effort on your part.
However, you need to be careful in finding the best property to invest in. By following the steps above and seeking expert advice, you should be able to start your Best Buy store investments which offer the highest value for your money.