ALDI

Net Lease Advisor Overview

Considered a long term investment, ALDI properties offer NNN lease terms that allow for fifteen to twenty year contracts without property management accountability. There is strong demand for ADLI store properties even as a private company, since they are typically located in high traffic commercial zones. Lease rates tend to call for 5 percent rent increase every five years.

ALDI

Pros

  • Rental increase every five yrs. is common when leasing
  • Lease is usually long-term
  • Extensions can be reproduced every five years

Cons

  • Company privately owned
  • Lidl as competitor

Tenant Description

With headquarters in Batavia, Illinois, ALDI was founded in Germany, 1961 by the Albrecht family and is known to be the first ‘discounter’ in modern retailer history. ADLI opened their first store in the United States in 1976, in the heartland of Iowa. This would become the first of over 1600 stores and counting, spanning 34 U.S. states. Out of these, over five hundred suburban retail locations have been opened in mid to high income communities. Over the last 10 years, ALDI has doubled in size and is expected to reach close to 2000 stores with plans for 650 new locations (including Southern CA) by 2018.

With over twenty four thousand employees to date, the grocery shopping locations and services provided by ALDI are industry leading. With more than ninety percent of product offerings under the ALDI brand, customers will find low prices and superior customer service. Right down to the product displays, being designed in custom shipping boxes that help to optimize shelf restocking times.