Sherwin-Williams
Overview
When looking into the home improvement and paint industry, Sherwin-Williams has been a steady and high demand net leasing investment opportunity. Strong credit backing with low pricing tends to create positive forecasts when compared against market competition.
Lowest Cap Rate
4.25%
Lowest cap rate over past 24 months
Average Cap Rate
5.27%
12 mo avg with 5+ yr lease term
Average Property & Lease
| Average Sale Price | $1,500,000 - $3,500,000 |
| Average NOI | $75,000 - $160,000 |
| Building SF | 5,000 |
| Lease Term | 10 Years |
| Escalations | 10% in Options |
| Stock Symbol | NYSE:SHW |
CREDIT RATING
Tenant Description
Based in Cleveland, OH, the historic Sherwin-Williams Company originated back in 1886 with Henry Sherwin and Edward Williams. Manufacturing a variety of high quality retail and home improvement products under multiple brands, their main brand is offered solely in over 3,800 paint store locations in the United States. Other familiar names include Thompson’s®, Krylon®, Dutch Boy®, and others.
Currently, Sherwin-Williams operates internationally with a major focus in North and South America, serving both residential and commercial with a wide assortment of painting and sealant products. They continue to pursue manufacturing, distributing, and developing their core product lines.
PROS
- Company guarantee
- Lower pricing
- Tenant investor-graded
CONS
- Leases shorter in length
- NN leases may create landlord accountability
COMPANY QUICK STATS
| Founded | 1866 |
| Headquarters | Cleveland, Ohio |
| Number of Locations | 4,859 |
| Revenue | $19.94 B |
| Company Website | https://www.sherwin-williams.com |
| Key Principal | John G. Morikis |