Ashley Furniture

Net Lease Advisor Overview

With their aggressive expansion of operations both in the United States and abroad, Ashley Furniture HomeStore is both the number one retail seller of furniture and bedding products, ranked globally as an in-demand, top-rated brand.

Building sizes normally consists of 30000 to 54000 +/- in square footage, surrounded by an average acreage of 2 1/2 to 5 1/2. Standard leasing structures include the fifteen year NNN along with three 5-year options; these may either increase 7 1/2 to 10 percent every five years, or on an annual basis. Considered to be a longer term investment without being subject to typical net leasing property accountability, Ashley is normally run by franchisees rather than operated directly from corporate.

Ashley Furniture Advisor

Pros

  • Standard 15 year NNN structure
  • Retail furniture branding is top-rated in global markets
  • No landlord accountability with NNN leasing

Cons

  • Non-investor and private corporation grading
  • Variable operating expenses and profitability with franchisees
  • Property leasing upon tenants exiting premises can be difficult with building size

Tenant Description

In 1945, Carlyle Weinberger founded the Ashley Companies with originating branches located in Goshen, Indiana and Chicago, Illinois. Initially incorporating as a sales company, they’ve now pioneered fifty years of service in the retail furniture business.

Founded in 1997, the Ashley Furniture HomeStore parent company is known as Ashley Furniture Industries, and located in Arcadia, Wisconsin. They remain the central hub for distribution and manufacturing. As a leading industry manufacturer with sales topping over three billion, they have also further expanded into the brands Ashley Casegoods, Ashley Millennium, and Ashley Upholstery.

Over the past 10 years, Ashley Furniture HomeStore has experienced continuous expansion in the United States and all across the world. With stores in North America including Mexico, Canada, Central America, and even Japan, retail properties currently number over 520 globally with 450 in North America.

While there are also corporate owned Ashley retail locations, ownership and operation of the entire chain is local. This is based on the fact that individual store owners and employees are based locally and can better assist respective communities.

With current employees surpassing 18000, Ron and Todd R. Wanek are the father and son team behind the name. They currently spearhead the manufacturing and distribution operations around the globe. At the moment, their company is in the process of constructing a 3.8 mil sq. ft. complex in NC for future business operations.